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TheStreet Open House

Chevron And Chubu Electric Sign Wheatstone LNG Agreements

Stocks in this article: CVX

Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed binding long-term Sales and Purchase Agreements (SPAs) with Chubu Electric Power Company Inc. (Chubu) for liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

Under the agreements Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Chubu with 1 million tons per annum (MTPA) of LNG for up to 20 years.

Joe Geagea, president, Chevron Gas and Midstream, said, “Chubu, one of the world's leading LNG customers, is now a partner and customer of the Chevron-operated Gorgon Project. We are pleased to expand the strong partnership between our two companies with these SPAs for Wheatstone LNG."

Roy Krzywosinski, managing director, Chevron Australia, said, "More than 80 percent of Chevron's equity LNG from Wheatstone is covered under long-term off-take agreements with customers in Asia. The agreements demonstrate that Wheatstone is well-placed geographically to meet the Asia Pacific region's growing demand for a safe, reliable and cleaner-burning source of energy.”

The Chevron-operated Wheatstone Project is located at Ashburton North, 7.5 miles (12 kilometres) west of Onslow in Western Australia. The project will consist of two LNG trains with a combined capacity of 8.9 million tons per annum and a domestic gas plant.

The Wheatstone Project is a joint venture between Australian subsidiaries of Chevron (64.14%), Apache Energy (13%), Kuwait Foreign Petroleum Exploration Company (7%), Shell (6.4%), and Kyushu Electric Power Company (1.46%), together with PE Wheatstone Pty Ltd. (part owned by Tokyo Electric Power Company, 8%).

Chevron also holds an 80.17 percent equity interest in the Wheatstone and Iago fields that provide 80% of the feedgas to the Wheatstone Project. The partners in the fields are Australian subsidiaries of Shell (8%) and Kyushu Electric Power Company (1.83%) together with PE Wheatstone Pty Ltd (part owned by Tokyo Electric Power Company, 10%).

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