Chevron Signs Binding Gorgon LNG Sales Agreements
September 10 2009 - 1:33AM
Dow Jones News
Chevron Corp. (CVX) said Thursday it has signed three binding
sales agreements to supply nearly 3 million tons a year of
liquefied natural gas from its proposed Gorgon project to Japanese
and Korean energy companies.
In a statement, Chevron said Japan's Osaka Gas Co. Ltd. will buy
1.375 million metric tons annually, or mtpa, of LNG commencing in
the second half of 2014 for 25 years, with Tokyo Gas Co. Ltd.
agreeing to purchase 1.1 mtpa over the same period.
Subject to Australian foreign investment approval, Osaka Gas
will acquire a 1.25% interest in Gorgon and Tokyo Gas will acquire
a 1% stake in the project from Chevron.
Chevron has also agreed to supply its 50% owned GS Caltex Corp.
of Korea with 0.5 mtpa of LNG from Gorgon and other Chevron gas
projects.
Further sales of Gorgon gas are expected in coming months, with
a final investment decision on the project expected in "coming
weeks," said Chevron.
The Gorgon project in Australia's North West Shelf is operated
by Chevron in joint venture with ExxonMobil Corp. and Royal Dutch
Shell PLC, which each have a 25% stake.
-By Bill Lindsay, Dow Jones Newswires; 61-2-8272-4694;
bill.lindsay@dowjones.com