follow us like us subscribe contact us
Loading, please wait

Chevron Lands Million-Ton LNG Futures Buy in Australia

By Jen Alic | Fri, 05 April 2013 23:04 | 0

Chevron has announced that Chubu Electric Power Co. of Japan has signed a binding agreement to purchase 1 million tons of LNG annually from the Wheatstone project in Australia for up to 20 years.

Wheatstone is a joint venture owned by Chevron (64.14%), Apache Energy Ltd. (13%), Kuwait Petroleum Corp. (7%), Royal Dutch Shell Plc. (6.4%), Kyushu Electric Power Co. (1.64%) and PE Wheatstone Pty Ltd., which is partly owned by Tokyo Electric. The Chevron-operated Wheatstone project, in Western Australia, will eventually have an 8.9 million-ton annual LNG capacity with two LNG trains and a gas plant. Wheatstone will begin supplying LNG in 2016. 

Related article: LNG Exports Threaten High Gas Prices in the US as Shale Production Slows

The deal means that more than 80% of Chevron’s equity LNG from Wheatstone is already covered under long-term purchase agreements with Asian customers. It also signals that the Wheatstone project has solidly demonstrated its geographical status and market capacity to supply Asia customers.

Chevron (NYSE: CVX) is very well-positioned here. Overall, it holds an 80.17% equity interest in Wheatstone, as well as in the fields that provide 80% of the project’s gas. 

Japan—the world’s largest LNG importer—bought 87.3 million tons of LNG last year alone, with its utilities boosting demand for thermal power generation in the wake of Fukushima.

By. Jen Alic of Oilprice.com

About the author

Contributor
Jen Alic
Company: ISA Intel

More recent articles by Jen Alic

Sun 18 August 2013
Egypt, Take III: No End to the Carnage
Thu 15 August 2013
Iraqi Oil Exports Slump But Optimism Abounds
Thu 15 August 2013
E.ON Sees First-Half Profit Slump in Europe
Tue 13 August 2013
Will Moribund Uranium Prices Rebound?
Sun 11 August 2013
BG Group Gets US LNG Export Approval

Be the first to comment on this article.

Leave a comment