Chevron Australia Pty Ltd, a subsidiary of Chevron Corporation, has signed a Heads of Agreement (HOA) with Chubu Electric Co. Inc. for the purchase of 1.5 million tonnes per annum (MTPA) of Chevron's share of Gorgon LNG over 25 years commencing in 2010. The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project.
The HOA was signed by Jay Johnson, managing director of Chevron Australia, and Shiro Mizutani, executive vice president and director of Chubu Electric.
Speaking at the signing ceremony, John Gass, president of Chevron Global Gas, said: "Chevron welcomes Chubu Electric as a foundation customer for the Gorgon Project. We have a long standing relationship with Chubu and this demonstrates the value Chevron can offer customers through its leading role in the full gas supply chain.
"The agreement highlights the momentum behind the Gorgon Project and is a significant step towards the further commercialization of the Gorgon Area gas resources," said Gass.
Chevron Australia now has agreements in place that provide an opportunity to export more than 65 million tonnes of Australian LNG over 25 years from Chevron's share of the Gorgon Project. Chevron continues to pursue opportunities in Asia and North America for the remaining volumes of Gorgon LNG.
The Gorgon Project, in which Chevron Australia holds a 50 percent operating interest, is to include an initial two-train 10 MTPA LNG facility and a planned domestic gas plant located on Barrow Island. The project participants include the Australian subsidiaries of Shell (25 percent) and ExxonMobil (25 percent).
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