Chevron Clinches Gorgon LNG Deals with Japanese, Korean Cos


Greater Gorgon gas fields
(Click to Enlarge)

Australian subsidiaries of Chevron have signed three binding long-term Sales and Purchase Agreements (SPAs) for Chevron's share of liquefied natural gas (LNG) from the Gorgon project. The agreements are for a total supply of nearly 3 million tons per annum (MTPA) of LNG to Osaka Gas, Tokyo Gas, and GS Caltex.

Chevron will supply Osaka Gas 1.375 MTPA of LNG for 25 years. Osaka Gas will also purchase 1.25 percent equity in the Gorgon Project. Tokyo Gas will be supplied 1.1 MTPA over 25 years and will purchase a 1 percent equity stake. Supply from both agreements is expected to commence in the second half of 2014.

Chevron Australia Pty Ltd and Chevron International Gas Inc., have also signed separate agreements with GS Caltex Corp. for 0.5 MTPA of LNG for up to 20 years. The LNG to GS Caltex will be supplied from the Gorgon project and other gas within the global Chevron portfolio. GS Caltex is 50 percent owned by Chevron.

"We are pleased to welcome Osaka Gas and Tokyo Gas as foundation customers and equity participants in Gorgon. This builds upon our longstanding relationship with these companies and represents a major step towards the successful commercialization of the Gorgon Project," said Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Company.

"Securing sales agreements with three major customers in Japan and Korea is a significant milestone in Chevron's efforts to commercialize our equity natural gas and grow our LNG business," said John Gass, president, Chevron Global Gas.

"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," Gass said. He added, "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 percent)* in joint venture with the Australian subsidiaries of ExxonMobil (25 percent) and Shell (25 percent). 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.
 

Related Companies
 Company: Exxon Mobil Corporationmore info


 - Fire Breaks Out At Exxon's Refinery In Rotterdam, Netherlands (Aug 22)
 - ExxonMobil Misses Estimates as Cuts Fail to Offset Output Declines (Jul 28)
 - Exxon Fined for Russia Sanctions Violations Under Tillerson (Jul 20)
 Company: Shellmore info


 - Shell Divests Stake in Saudi JV (Aug 16)
 - Australia's $180B LNG Megaproject Boom Enters Final Stretch (Aug 14)
 - BP Says It Is Considering IPO of US Pipeline Assets (Jul 18)
 Company: Chevron Corporationmore info
 - Chevron's Watson Said to Plan to Step Down, Journal Reports (Aug 22)
 - Glencore, Chevron Enter Mexico's Recently Opened Fuel Market (Aug 17)
 - Jacobs Expands MSA for Chevron's US Refineries, Terminals (Aug 9)
 Company: Tokyo Gasmore info
 - Tokyo Gas Gets Bangladesh LNG Terminal Feasibility Study Contract (Jul 27)
 - PetroVietnam Gas, Tokyo Gas May Establish LNG JV in Vietnam (Jul 11)
 - Tokyo Gas Buys Eagle Ford Shale Stake, Despite Loss from Prior US Purchase (Jun 21)
 Company: Osaka Gasmore info
 - Indonesia's Small-Scale LNG Plans Face Several Challenges (Apr 15)
 - Chevron Sees Australia's Gorgon Project Train 1 Restarting in 30-60 Days (Apr 6)
 - Chevron Ships First Gorgon LNG Cargo to Japan's Chubu Electric Power (Mar 21)
 Company: GS Caltex Corp.more info
 - S. Korea's GS Caltex Shuts Heavy Oil Upgrading Unit After Fire (Aug 10)
 - Run Rates at S.Korea's GS Caltex Back at 93% after Cut Due to Oil Spill (Feb 5)
 - S.Korea Completing Sea Cleanup 164,000 Liters Oil Leak-Coast Guard (Feb 3)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Mechanical Technician
Expertise: Mechanical Technician
Location: Golden Meadow, LA
 
Plant Electrical Engineer
Expertise: Electrical Engineering|Facilities Engineer|Instrument & Controls Engineer
Location: Houston, 
 
Technician, Pipeline (Sonora, TX)
Expertise: Instrumentation Technician|Pipeline Operator
Location: Sonora, TX
 
search for more jobs

Brent Crude Oil : $52.57/BBL 1.34%
Light Crude Oil : $48.41/BBL 1.61%
Natural Gas : $2.93/MMBtu 0.34%
Updated in last 24 hours