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Chevron in LNG deal with Tokyo

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Published: Dec. 7, 2009 at 12:39 PM
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SAN RAMON, Calif., Dec. 7 (UPI) -- Chevron Corp. announced its Australian subsidiary signed a heads of agreement with a Tokyo electric company for liquefied natural gas deliveries.

Chevron Australia Pty Ltd. signed the HOA with the Tokyo Electric Power Co. for the delivery of more than 4 million tons of liquefied natural gas from the Wheatstone Project in northwest Australia under the provisions of a 20-year deal.

The Wheatstone LNG plant in the state of Western Australia has the capacity to produce more than 15 million tons of LNG per year.

TEPCO under the agreement takes a 15 percent stake in Chevron's equity share at Wheatstone fields and an 11.25 percent interest in natural gas processing facilities.

"TEPCO is among the most experienced LNG buyers in the world," said John Gass, president, Chevron Global Gas. "Their commitment to secure long-term LNG supplies from Wheatstone is a strong demonstration of their confidence in Chevron and represents another important step forward for the project."

Chevron expects final investment decisions on Wheatstone by 2011.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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