As per the non-binding deal estimated to be worth about $15bn, Chevron and the Wheatstone partners will deliver LNG to Tohoku for about 20 years.
Chevron Australia managing director Roy Krzywosinski said more than 80% of the company’s equity LNG from Wheatstone is now covered under long-term off-take agreements with customers in Asia.
"This off-take agreement for Wheatstone demonstrates our Australian LNG projects are in the right geographic location at the right time to meet Asia’s rapidly growing demand for cleaner burning natural gas," added Roy.
Wheatstone Project, operated by Chevron at 72.14%, entails two liquefied natural gas trains with a combined capacity of 8.9 mtpa and a domestic gas plant.
Currently under construction, the first gas shipments are expected in 2016.
Chevron has a 72.14% stake in the Wheatstone project while others are Australian units of Apache Corporation with 13%, Kuwait Foreign Petroleum Exploration Company with 7%, Royal Dutch Shell at 6.4% and Kyushu Electric with 1.46%.
The Wheatstone partners earlier inked long-term deals to supply LNG to Tokyo Electric Power and Kyushu Electric Power, and Chubu Electric Power.
