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Chevron and Tohoku sign LNG agreement

LNG Industry,


Chevron Corporation has signed long term Sales and Purchase Agreements (SPAs) with Tohoku Electric Power Company, Inc. (Tohoku) to supply liquefied natural gas (LNG) from the Chevron’s Wheatstone Project in Western Australia.

Chevron subsidiaries in Australia, together with subsets of Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Tohoku with 0.9 million tpy of LNG for up to 20 years, under the new agreements.

Growing LNG demand

"These agreements with Tohoku create a new partnership between our companies and demonstrate the benefits of buyers and sellers working together to ensure supply is brought to the market to meet growing LNG demand", commented Joe Geagea, president of Chevron Gas and Midstream.

"We welcome the agreements with Tohoku, which mean that 85 percent of Chevron's equity LNG from Wheatstone is now committed to customers in Asia on a long-term basis. These agreements, combined with our ongoing exploration success, demonstrate that our Wheatstone and Gorgon projects in Australian are well-placed to meet the growing demand for natural gas in the Asia-Pacific region", added Roy Krzywosinski, managing director of Chevron Australia.

The Wheatstone Project is located at Ashburton North, Western Australia. The project will consist of two LNG trains with a combined capacity of 8.9 million tpy and a domestic gas plant.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01102013/chevron_and_tohoku_sign_lng_agreement_281/


 

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