Under the agreements, Kyushu Electric anticipates receiving 0.3 million tons per annum (mtpa) of LNG from the Gorgon project for 15 years.
Kyushu Electric also intends to acquire 1.83% of Chevron’s equity share in the Wheatstone field licenses and a 1.37% interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in northwestern Australia.
Additionally, Kyushu Electric expects to purchase 0.7mtpa of LNG from the Wheatstone project for up to 20 years. This sales volume is net of the LNG that Kyushu Electric will lift as an equity participant in Wheatstone. Including this equity participation, Kyushu Electric will take delivery of 0.8mtpa of LNG from the Wheatstone project.
Construction of the Gorgon project began in the second half of 2009, with first gas planned for 2014. The initial project includes a 15mtpa LNG facility and a domestic gas plant in northwestern Australia. Chevron is the operator and has an approximate 47% interest in the project.
The Wheatstone project entered the front end engineering and design phase in July 2009 and expects to make a final investment decision in 2011. The initial phase of the project plans to have the capacity to process 8.6mtpa of LNG and a domestic gas plant. Chevron is the operator and holds an approximate 75% interest in the project.
