Chevron has signed binding contracts with Osaka Gas and Tokyo Gas for LNG supply from the Gorgon LNG Development for a period of 25 years. Chevron will supply Osaka Gas with 1.375 MMt/a of LNG and Tokyo Gas with 1.1 MMt/a.
Both companies are purchasing an equity share in the Gorgon project. Osaka Gas is purchasing 1.25 per cent and Tokyo Gas is acquiring a 1 per cent interest.
In addition, Chevron has signed a separate agreement to supply South Korean energy company GS Caltex with 0.5MMt/a of LNG for up to 20 years.
Chevron Australia Managing Director Roy Krzywosinski welcomed the agreements as a key step toward a final investment decision on the Gorgon project, which is expected in the coming weeks.
“We are pleased to welcome Osaka Gas and Tokyo Gas both as foundation customers, as well as equity participants, in the Gorgon project. These companies have a long history in the LNG industry and these agreements build on the strong relationships we already enjoy with both companies,”? Mr Krzywosinski said.
Chevron Global Gas President John Gass added “These agreements represent a significant milestone in Chevron’s efforts to commercialise our equity natural gas and grow our LNG business. The agreement with GS Caltex enhances Chevron’s strong position in South Korea, where GS Caltex is a leading oil refiner, with substantial petrochemical, power and city gas operations.”?
Chevron expects further sales of Gorgon LNG to be executed in the coming months.
The Gorgon LNG Development is a joint venture between Chevron as operator, ExxonMobil and Shell. The project’s scope includes three 5 MMt/a LNG trains, an underground carbon dioxide injection project and a domestic gas plant.