As per the HOA, KOGAS expects to purchase 1.5 million tons per annum (MTPA) of LNG for up to 20 years from the Wheatstone project participants. Approximately 75% of the 1.5 MTPA is expected to be purchased from Chevron, with the remainder from other Wheatstone hub participants.

In addition to being a foundation customer of the Wheatstone project, KOGAS signed an equity HOA to acquire a 5% interest in each of Chevron’s Wheatstone field licenses and in the Wheatstone project LNG and domestic gas processing facilities. Including this equity participation, KOGAS plans to take delivery of a total of approximately 1.95 MTPA of LNG from the Wheatstone project.

John Gass, president of Chevron Global Gas, said: “Chevron is pleased to have KOGAS, the largest LNG buyer in the world, as part of the Wheatstone project. Their entry adds further momentum to this development.”

Front-end engineering and design is currently being completed on the Wheatstone project ahead of a planned final investment decision in 2011.

In September 2009, KOGAS and Chevron also agreed to an HOA for the delivery of 1.5 MTPA of LNG from the Gorgon project for 15 years, with an option to extend the agreement for an additional five years.