Chubu, Japan's third-biggest utility, added it would buy 1.44 million tonnes per year of LNG from the project's operator Chevron for 25 years from 2014. It is also entitled to an additional 60,000 tonnes per year based on its stake.
Chubu declined to comment on the value of the stake purchase, but based on Chevron's initial cost estimate, the stake may be worth around $170 million. Chubu is the third Japanese firm to buy a stake in the project. Tokyo Gas Co has said it would buy 1 percent and Osaka Gas Co bought 1.25 percent from Chevron.
Chevron originally held 50 percent of the project, while Royal Dutch Shell Plc and Exxon Mobil Corp each hold 25 percent. The A$43 billion ($40 billion) Gorgon Project includes a three-train, 15 million-metric-tonne-per-annum LNG facility and a domestic gas plant, with production slated to start in 2014.
($1=88.34 Yen)
(Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
((osamu.tsukimori@thomsonreuters.com ; +813 6441 1857; Reuters Messaging: osamu.tsukimori.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: LNG GORGON/CHUBU
TOKYO, Nov 25 (Reuters) - Japanese utility Chubu Electric Power Co said on Wednesday it decided to acquire 0.417 percent of Australia's Gorgon liquefied natural gas project from U.S. oil major Chevron by the end of the year.
Chubu, Japan's third-biggest utility, added it would buy 1.44 million tonnes per year of LNG from the project's operator Chevron for 25 years from 2014. It is also entitled to an additional 60,000 tonnes per year based on its stake.
Chubu declined to comment on the value of the stake purchase, but based on Chevron's initial cost estimate, the stake may be worth around $170 million. Chubu is the third Japanese firm to buy a stake in the project. Tokyo Gas Co has said it would buy 1 percent and Osaka Gas Co bought 1.25 percent from Chevron.
Chevron originally held 50 percent of the project, while Royal Dutch Shell Plc and Exxon Mobil Corp each hold 25 percent. The A$43 billion ($40 billion) Gorgon Project includes a three-train, 15 million-metric-tonne-per-annum LNG facility and a domestic gas plant, with production slated to start in 2014.
($1=88.34 Yen)
(Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
((osamu.tsukimori@thomsonreuters.com ; +813 6441 1857; Reuters Messaging: osamu.tsukimori.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: LNG GORGON/CHUBU
TOKYO, Nov 25 (Reuters) - Japanese utility Chubu Electric Power Co said on Wednesday it decided to acquire 0.417 percent of Australia's Gorgon liquefied natural gas project from U.S. oil major Chevron by the end of the year.
Chubu, Japan's third-biggest utility, added it would buy 1.44 million tonnes per year of LNG from the project's operator Chevron for 25 years from 2014. It is also entitled to an additional 60,000 tonnes per year based on its stake.
Chubu declined to comment on the value of the stake purchase, but based on Chevron's initial cost estimate, the stake may be worth around $170 million. Chubu is the third Japanese firm to buy a stake in the project. Tokyo Gas Co has said it would buy 1 percent and Osaka Gas Co bought 1.25 percent from Chevron.
Chevron originally held 50 percent of the project, while Royal Dutch Shell Plc and Exxon Mobil Corp each hold 25 percent. The A$43 billion ($40 billion) Gorgon Project includes a three-train, 15 million-metric-tonne-per-annum LNG facility and a domestic gas plant, with production slated to start in 2014.
($1=88.34 Yen)
(Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
((osamu.tsukimori@thomsonreuters.com ; +813 6441 1857; Reuters Messaging: osamu.tsukimori.reuters.com@reuters.net))
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