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Japan takes on more Wheatstone LNG

SAN RAMON, Calif., March 29 (UPI) -- A Japanese utility company secured a deal for 1 million tons of liquefied natural gas from Australia per year for 20 years, Chevron Corp. said.

Chevron announced the long-term sales and purchase agreement with Japanese utility Chubu Electric Power Co. for LNG from the Wheatstone project in Australia.

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Chevron Regional Managing Director Roy Krzywosinski said the deal showcases Wheatstone's value to the Asia-Pacific.

"More than 80 percent of Chevron's equity LNG from Wheatstone is covered under long-term, off-take agreements with customers in Asia," he said in a statement.

First gas is expected by 2016 from Wheatstone LNG.

Economic growth in Asia suggests a regional increase in demand for natural gas. Japan started taking on more natural gas after the Fukushima Daiichi nuclear disaster in 2011.

"The agreements demonstrate that Wheatstone is well-placed geographically to meet the Asia-Pacific region's growing demand for a safe, reliable and cleaner-burning source of energy," Krzywosinski said.

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