Chevron completes sales of Gorgon LNG

9/11/2009

Chevron completes sales of Gorgon LNG

Chevron’s Australian subsidiaries have signed three binding long-term contracts for the company’s share of liquefied natural gas (LNG) from the Gorgon project to Japanese and South Korean markets.

The agreements, announced Wednesday, are for a total supply of nearly 3 million tons per annum (Mtpa) of LNG. Chevron will supply Japan’s Osaka Gas with 1.375 Mtpa of LNG for 25 years; Osaka Gas will also purchase 1.25% equity in Gorgon. Tokyo Gas will purchase 1.1 Mtpa over 25 years and 1% equity in the project. Supply from both agreements is expected to commence in the second half of 2014.

Chevron Australia Pty Ltd. and Chevron International Gas Inc. also signed separate agreements with South Korea’s GS Caltex Corp.—a 50% Chevron-owned company—for 0.5 Mtpa of LNG from Gorgon and other Chevron developments for up to 20 years.

“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. “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.”

Chevron expects further sales of Gorgon LNG to be executed in the coming months.

The Gorgon project is operated by Chevron Australia Pty Ltd. (50%) in joint venture with the Australian subsidiaries of ExxonMobil (25%) and Shell (25%). The project’s scope includes a three-train, 15-Mtpa LNG facility, a carbon dioxide injection project expected to be the world’s largest, and a domestic gas plant.

 

 

 

 

 

 


 

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