Chevron to supply LNG from Wheatstone project to Kyushu Electric
17 Sep 2011
US oil giant, Chevron Corp yesterday signed a binding deal to supply liquefied natural gas (LNG) from its proposed Wheatstone project in Western Australia to Japan's Kyushu Electric Power Co.
Under the agreement, San Ramon, California-based Chevron, together with its partners, Apache and Kuwait Foreign Petroleum Exploration Co, will supply 0.7 million tons (MTPA) of LNG per annum to Kyushu Electric for 20 years.
Kyushu Electric, Japan's fourth largest electric power company will also acquire 1.83 per cent of Chevron's equity share in the Wheatstone field licenses and a 1.46 per cent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in the Pilbara region of Western Australia.
Apache Corporation holds a 16.25 per cent stake in the Wheatstone project, KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company, holds 8.75 per cent interest, while the remaining is held by Chevron Australia.
Chevron is responsible for marketing of LNG from the Wheatstone project.
John Gass, president, Chevron Gas and Midstream, welcomed Kyushu Electric as a foundation customer of the Wheatstone Project.