The heads of agreement covers the sale of 1.5 million tonnes per annum of Chevron’s share of Gorgon LNG over 25 years starting from 2010. The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project, according to Chevron.
The HOA was signed by Jay Johnson, managing director of Chevron Australia, and Shiro Mizutani executive vice president and director of Chubu Electric.
“Chubu Electric is one of the world’s largest LNG consumers and this agreement is a significant step toward further commercialisation of the Gorgon Area gas resources,” Chevron Australia managing director Jay Johnson said.
Chevron Australia's general manager of Greater Gorgon Area, Colin Beckett, said the agreement showed the demand for Gorgon LNG and support for the project.
“Chevron Australia now has agreements in place that provide a path forward to export more than 65 million tonnes of Australian LNG over 25 years from Chevron's share of the Gorgon project,” Beckett said.
“We continue to look at other opportunities in Asia and North America.”
These other opportunities could include South Korea's second-biggest oil refiner, GS Caltex Corporation, which has said it has been discussing long-term contracts with Chevron.
The Gorgon Project is to include an initial two-train 10 million tonnes per annum LNG facility and a planned domestic gas plant located on Barrow Island.
Chevron Australia has a 50% stake in the Gorgon project and is operator. The other participants are the Australian subsidiaries of Shell and ExxonMobil, which each hold 25%.
