By Houston Business Journal

Subsidiaries of Apache Corp. and Kuwait Foreign Petroleum Exploration Co. ksc have signed an agreement to purchase liquefied natural gas from the Wheatstone LNG project in Australia and sell it to Korea Gas Corp.

Over the 20-year agreement, Korea Gas, or KOGAS, expects to purchase 1.5 million tons per annum from the Wheatstone facility, with 25 percent coming from the Apache agreement and the rest coming from Chevron Corp., which operates Wheatstone. The numbers for Houston-based Apache (NYSE: APA) should total 240,000 tons of LNG per year to KOGAS, or 32 million cubic feet per day.

KOGAS also acquires a 5-percent interest in Wheatstone and Chevronâ¿¿s Wheatstone field licenses, and 5-percent interests in some Apache/Kuwait offshore licenses.

Financial terms were not disclosed.

Copyright 2010 American City Business Journals
Copyright 2010