SAN RAMON (dpa-AFX) - Integrated energy company Chevron Corp. (CVX) has signed an agreement to sell more liquefied natural gas or LNG to Japan from its US$29 billion Wheatstone project, which located at coast of Western Australia, according to several reports.
The reports said that as per deal, the Japanese electricity supplier Tohuku Electric Power Co will buy 1 million tonnes of LNG a year from Wheatstone for 20 years. The deal with Tohoku means over 80% of Chevron's equity output from Wheatstone. Wheatstone is currently under construction. The first gas shipment from Wheatstone project is expected in 2016.
The onshore foundation project is a joint venture between the Australian subsidiaries of Chevron (operator 72.14%), Apache (13%), Kuwait Foreign Petroleum Exploration Company (7%), Shell (6.4%) and Kyushu Electric (1.46%).
In addition, Chevron reportedly said it has begun marketing gas from a proposed expansion of its A$43 billion Gorgon project in Australia. Gorgon is over 40% complete and remains on track to ship its first LNG cargo in 2014.
Copyright RTT News/dpa-AFX