• 6 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 11 hours Keystone Pipeline Restart Still Unknown
  • 15 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 17 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 19 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 20 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 22 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 23 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 8 days Oil And Gas M&A Deal Appetite Highest Since 2013
Keystone XL Pipeline Gains Approval After A 9-Year Battle

Keystone XL Pipeline Gains Approval After A 9-Year Battle

Nebraskan regulators have approved the…

Markets Shrug On Flat Oil Rig Count

Markets Shrug On Flat Oil Rig Count

The United States oil rig…

Chevron Sign $15 Billion Deal to Supply LNG to Tohoku Electric Power Company

Chevron Sign $15 Billion Deal to Supply LNG to Tohoku Electric Power Company

With the expansion of Asian economies, and especially as a result of Japan shutting down its nuclear industry, demand for fossil fuels is high in the East.

The $29 billion Wheatstone natural gas project just off the coast of Western Australia is perfectly positioned to take advantage of this high demand.  The project, owned by Chevron Australia (72.14%), Apache Corporation  (13%), Kuwait Foreign Petroleum Exploration Company (7%), Royal Dutch Shell (6.4%), and Kyushu Electric (1.46%), consists of a domestic gas plant and two liquefied natural gas trains with a combined capacity of 8.9 mtpa.

Chevron Australia, a subsidiary of the Chevron Corporation, has just signed a deal with Japan’s Tohoku Electric Power Company for the supply of one million tonnes of LNG each year from Wheatstone. According to the deal, Chevron and the other partners at Wheatstone will deliver gas to Tohoku for the next 20 years with the first delivery set for 2016, at an estimated value of $15 billion.

Roy Krzywosinski, the managing director of Chevron Australia, said that with this deal more than80% of the company’s share of LNG from Wheatstone is pledged to long term contracts with Asian customers. “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.”

Wheatstone has also signed long term deals to supply LNG to Tokyo Electric Power, Kyushu Electric Power, and Chubu Electric Power.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News