Chevron signs SPA agreement with Chubu

Chevron Corp. has signed binding long-term Sales and Purchase Agreements (SPAs) with Chubu Electric Power Company Inc. (Chubu) for LNG from the Wheatstone Project in Western Australia.

Under the agreements Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Chubu with 1 million tpy of LNG for up to 20 years.

Roy Krzywosinski, managing director, Chevron Australia, said, "More than 80 percent of Chevron's equity LNG from Wheatstone is covered under long-term off-take agreements with customers in Asia. The agreements demonstrate that Wheatstone is well-placed geographically to meet the Asia Pacific region's growing demand for a safe, reliable and cleaner-burning source of energy."

The Chevron-operated Wheatstone Project is located at Ashburton North, 7.5 miles west of Onslow in Western Australia. The project will consist of two LNG trains with a combined capacity of 8.9 million tpy and a domestic gas plant.

The Wheatstone Project is a joint venture between Australian subsidiaries of Chevron (64.14%), Apache Energy (13%), Kuwait Foreign Petroleum Exploration Company (7%), Shell (6.4%), and Kyushu Electric Power Company (1.46%), together with PE Wheatstone Pty Ltd. (part owned by Tokyo Electric Power Company, 8%).

Adapted from press release by Peter Farrell.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/28032013/wheatstone-lng-to-supply-1-million-tpy-of-lng-to-chubu/