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.
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.