Korea Gas signs 20-years LNG supply deal for Chevron's Wheatstone project
20 Jul 2010
US oil major Chevron said yesterday that it has signed a heads of agreement (HOA) to sell liquefied natural gas (LNG) from its Wheatstone natural gas project in Australia to Korea Gas Corporation (KOGAS).
Korea Gas, the largest LNG buyer in the world, will buy 1.5 million tonnes per year of LNG for 20 years.
About 25 per cent of the LNG is expected to come from Wheatstone partners Apache Corporation and the Kuwait Foreign Petroleum Exploration Co and the balance 75 per cent will be supplied by Chevron.
Apart from the LNG supply deal, KOGAS will also take a 5-per cent stake in the Wheatstone project, which includes a 5-per cent stake in Apache and KUFPEC's Brunello and Julimar fields that supply gas to Wheatstone.
In October 2009, Chevron had said that it had signed a binding agreement with Apache Julimar Pty Ltd., a subsidiary of the Apache Corporation, which will assume a 16.25 per cent equity interest in the Wheatstone project, and with KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company, which will assume an 8.75 per cent interest in the project. (See: Chevron ropes in Apache, Kuwait firm for Wheatstone project)
Chevron is responsible for the marketing of LNG from the Wheatstone project.
In September 2009, KOGAS and Chevron also agreed to an HOA for the delivery of 1.5 MTPA of LNG from the Gorgon project for 15 years, with an option to extend the agreement for an additional five years.