Houston: Chevron Corp said Monday it has signed a sales and purchase agreement with Japanese utility Kyushu Electric Power Co for the delivery of liquefied natural gas from its Gorgon Project offshore Australia.
Under the binding agreement, Kyushu Electric will receive 0.3 million tons per annum of LNG from Gorgon for up to 20 years beginning in 2015, the company said in a press release.
Gorgon is more than a year into construction and remains on track to produce first gas in 2014, said Jim Blackwell, president of Chevron Asia Pacific Exploration and Production.
Kyushu Electric and Chevron Australia also have existing preliminary agreements in relation to LNG and equity sales from the Wheatstone Project, another of Chevron massive investments in Australia.
Gorgon is the biggest of Chevron's proposed projects in Australia, and will have an annual processing capacity of 15 million metric tons of LNG. Chevron owns around 47% in Gorgon and will operate the project, with Shell and Exxon owning 25% each. [25/01/11]
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