By San Francisco Business Times

Chevron Corp. made a deal to sell liquefied natural gas from a development off Australiaâ¿¿s northwest coast to Korea Gas Corp.

San Ramon-based Chevron (NYSE: CVX) is developing the Wheatstone project with Apache Corp. and the Kuwait Foreign Petroleum Exploration Co.

Korea Gas plans to buy 1.5 million tons of natural gas a year for up to 20 years from the partners and it will take 5 percent stake in the Wheatstone project. About three-quarters of the gas will be sold by Chevron and the rest by the other two partners, who took stakes in the development in October.

Chevron and its partners are still working on the vast Wheatstone development and said a ⿿planned final investment decision⿝ will be made next year. Apache has a 16.25 percent stake and Kuwait Foreign Petroleum Exploration has an 8.75 percent interest. Chevron is responsible for marketing the gas produced by the project.

Korea Gas also agreed last year to buy gas from Chevronâ¿¿s big Gorgon project in the same area. Thatâ¿¿s a 15-year agreement with an option for 5 more years.

John Watson is CEO of Chevron.

Steven Farris is chairman and CEO of Houston-based Apache (NYSE: APA).

No prices were given.

Copyright 2010 American City Business Journals

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