Chevron signs LNG deal for Japan

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SAN RAMON, Calif., May 10 (UPI) -- A deal between Chevron and Japan's JX Nippon Oil and Energy for liquefied natural gas secures Australia's place in the regional energy sector, an official said.

Chevron's subsidiary in Australia announced it signed a deal with Nippon for a portion of the liquefied natural gas from the giant offshore Gorgon project.

"The agreement is another step toward commercializing our equity natural gas in Australia, further demonstrating Chevron's leading ability to meet long-term demand growth in Asia-Pacific," said Roy Krzywosinski, managing director of Chevron Australia, in a statement. "Construction of the Gorgon project is progressing well with first gas expected in 2014."

Nippon under the deal receives 300,000 tons of LNG per year for 15 years.

Japan is the world's largest consumer of LNG, taking on even more in the wake of the magnitude-9 earthquake that crippled the parts of the country's nuclear energy sector in March.

Chevron lauds the Gorgon project as a major find for the supermajor with a resource base of more than 40 trillion cubic feet of natural gas and an estimated lifespan of 40 years.