Chevron Corp has signed a sales and purchase agreement (SPA) with Kyushu Electric Power, a Japanese regional utility, for a portion of Chevron-led offtake of liquefied natural gas (LNG) from the Gorgon project.
The utility buy 300,000 metric tons of LNG a year from the 15 million metric ton-a-year Gorgon project in Australia for a maximum of 20 years beginning in 2015.
Chevron is the operator of the Gorgon Project and has an approximate 47% interest.
The initial Gorgon project development, in northwestern Australia, will include a three-train, 15 MTPA LNG facility and a domestic gas plant.
Chevron Global Gas president John Gass said that the company is pleased to have reached this agreement with Kyushu Electric, one of the leading companies in the world’s largest LNG market.
Kyushu Electric and Chevron Australia also have existing heads of agreements in relation to LNG and equity sales from Chevron’s Wheatstone project.