Tokyo Gas, a major Japanese utility company, plans to purchase 1.2 million tonnes per annum (MTPA) of Gorgon LNG production from 2010 over a 25-year period.

The parties are also discussing Tokyo Gas taking an equity interest in the Gorgon Project, according to Chevron Australia managing director Jay Johnson.

"Australia is already a leading supplier of LNG to the Asia region, and this deal puts the two groups on a firm path to finalise terms for delivery of Gorgon LNG into Japan," Johnson said.

“Chevron will continue to target LNG markets in Asia and North America for its remaining volumes of Gorgon LNG.”

Japan remains the world’s largest LNG Market, importing more than 55 million tonnes per annum - or about half of the world’s total.

The Gorgon Project is planned to include an initial two train (10 MTPA) LNG facility located on Barrow Island. The Gorgon partners are the Australian subsidiaries of Chevron (50% and operator), Shell (25%) and ExxonMobil (25%).

The project is set to create up to 3,000 construction jobs once operational. In ongoing business for associated industries, more than 6,000 jobs are expected across the country.

Earlier this year, the Gorgon joint-venture partners signed a framework agreement to align their equity interests and to pave the way for the combined development of Gorgon and nearby gas fields as one world-scale project. In addition, individual joint-venture participants are able to secure markets for their own share of Gorgon LNG.