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Chevron Corporation has announced that its Australian subsidiaries have signed binding long-term sales and purchase agreements (SPAs) with Chubu Electric Power of Japan for a portion of Chevron’s share of liquefied natural gas (LNG) from the Gorgon Project.
In a statement the US supermajor said that it has agreed to supply Chubu Electric 1.44 million metric tons per annum (mtpa) of LNG for 25 years. Also, Chubu Electric intends to purchase 0.417% equity from Chevron’s stake in the Gorgon Project.
The value of the deal was not disclosed.
“The SPA with Chubu Electric continues to build momentum toward commercializing our equity natural gas in the project,” Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Company said.
The agreement follows the recent signing of three binding long-term SPAs with Osaka Gas, Tokyo Gas and GS Caltex, a 50%-owned Chevron equity affiliate, for delivery of a total of nearly 3 mtpa, as well as a heads of agreement with the Korea Gas Corporation (KOGAS) for 1.5 mtpa.
“The foundation customers in Gorgon are leading energy companies in the world’s largest LNG markets. Our agreements position Chevron to deliver supplies to meet long-term demand in the growing Asia-Pacific region,” said John Gass, president, Chevron Global Gas.
The Gorgon Project is operated by Chevron, which will have an approximate 47% interest in the project after the sale to Chubu.
The initial Gorgon Project development, in northwestern Australia, will include a three-train, 15 million-metric-tons-per-year liquefied natural gas facility and a domestic gas plant.
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