Chevron Agrees Deal to Sell Australian Gorgon LNG to Chinese Firm

Reuters

SYDNEY, Dec 22 (Reuters) - Chevron Corp on Tuesday said it has agreed to sell up to 1 million tonnes a year of liquefied natural gas (LNG) from its Australian Gorgon project to China Huadian Green Energy Co over 10 years starting in 2020.

The non-binding heads of agreement comes amid a deterioration in Asian LNG prices <LNG-AS>, aggravated by mounting supply from Australia, which aims to overtake Qatar as the world's top producer in coming years.

The price has slid two-thirds since 2014 to under $7 per mmBtu.

"This is an important step in the commercialisation of Chevron's natural gas holdings in Australia," Pierre Breber, executive vice president of Chevron Gas and Midstream, said in a statement.

Chevron in January signed a contract with South Korea's SK LNG Trading Pte Ltd to supply 4.15 million tonnes of LNG from Australia over a five years starting in 2017.

The Gorgon Project combines the development of the Gorgon field and the nearby Jansz-Io field and is capable of producing 15.6 million tonnes of LNG a year.

China Huadian Green Energy is a subsidiary of state-owned power generator China Huadian Group.

The Gorgon Project is a joint venture between Chevron, which holds a 47.3 percent stake, ExxonMobil and Royal Dutch Shell, each with 25 percent, and three Japanese utilities. (Reporting by James Regan; Editing by Richard Pullin)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
US Fort Lupton, CO: Associate Mechanic Technician - Mechanic Technician II
Expertise: Mechanical Technician
Location: Fort Lupton, CO
 
QA/SQS Specialist
Expertise: QA / QC / Inspection
Location: North Slope, AK, United States, AK
 
Plant Foreman - Calumet, OK
Expertise: Facilities Management|Heavy Machinery Operator|Maintenance Technician
Location: Calumet, OK
 
search for more jobs

Brent Crude Oil : $54.33/BBL 0.81%
Light Crude Oil : $51.5/BBL 1.29%
Natural Gas : $3.75/MMBtu 1.35%
Updated in last 24 hours