Chevron signs 3m tonne/year Gorgon LNG supply deals

10 September 2009 10:07  [Source: ICIS news]

SINGAPORE (ICIS news)--Energy giant Chevron said on Thursday it has signed agreements to supply 3m tonnes/year of liquefied natural gas (LNG) from its Gorgon project in Australia to Japan and Korea.

A total of 1.375m tonnes/year of LNG would be supplied to Japan’s Osaka Gas over 25 years, while Tokyo Gas would get 1.1m tonnes/year of LNG over the same period starting from the second half of 2014, the company said.

The Gorgon project has a three-train, 15m tonnes/year LNG facility.

The two Japanese gas players would also be part-owners of the project, with Osaka Gas buying up a 1.25% interest and Tokyo Gas acquiring 1% in the project.

"With Osaka Gas and Tokyo Gas, we have as foundation customers two of the most experienced LNG buyers in the largest LNG market in the world," said John Gass, president of Chevron Global Gas.

Meanwhile, a third agreement involves annual LNG supply of 500,000 tonnes to GS Caltex, a 50%-owned subsidiary of Chevron, for up to 20 years partly from the Gorgon project, the company said.

"The agreements with GS Caltex provide our initial entry into the important Korean LNG market and GS Caltex's first expansion from refining, petrochemicals and power into LNG," said Gass.

Chevron Australia Pty Ltd owns 50% of the Gorgon project, while the remaining stake was equally owned by the Australian subsidiaries of oil and gas majors ExxonMobil and Shell.

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By: Pearl Bantillo
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