14-05-2012

Chevron, Tohoku sign agreement for Wheatstone LNG

Chevron Corporation today announced that its Australian subsidiaries have signed a non-binding Heads of Agreement (HOA) with Tohoku Electric Power Company Incorporated (Tohoku) for the delivery of liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia.

Under the agreement, Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company (KUFPEC), is expected to deliver up to 1 million tons per annum (MTPA) of LNG to Tohoku for up to 20 years.

Joe Geagea, president, Chevron Gas and Midstream welcomed Tohoku as a major customer of the Wheatstone Project.

"We are pleased Tohoku has agreed to source a significant portion of its annual energy supply requirements from the Wheatstone Project, which further highlights customers' confidence in Wheatstone as a safe, reliable energy source."

Roy Krzywosinski, managing director, Chevron Australia, said, more than 80 percent of Chevron's equity LNG from Wheatstone is now covered under long-term off-take agreements with customers in Asia.

"This off-take agreement for Wheatstone demonstrates our Australian LNG projects are in the right geographic location at the right time to meet Asia's rapidly growing demand for cleaner burning natural gas."

The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.

The onshore foundation project is a joint venture between the Australian subsidiaries of Chevron (operator 72.14%), Apache (13%), KUFPEC (7%), Shell (6.4%) and Kyushu Electric (1.46%).