Chevron USA has signed an agreement to supply liquefied natural gas (LNG) from its Australian projects to China Huadian Green Energy.
The deal is to supply up to one million tonnes per annum (MTPA) for over ten years starting in 2020 from the Gorgon and Wheatstone LNG projects, which are nearing completion.
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Chevron Australia managing director Roy Krzywosinski said: "We welcome the opportunity to supply LNG to China Huadian and look forward to building lasting relationships with our customers in the region as the Chevron-operated Gorgon and Wheatstone projects move into operations.
"The China Huadian agreement demonstrates Chevron’s equity gas from Australia is well-placed to meet the growing demand for natural gas in the Asia-Pacific region."
The Gorgon gas project is a joint venture of the Australian subsidiaries of Chevron (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).
The project will involve the development of the Gorgon gas fields and the nearby Jansz-Io field, and a LNG plant with three processing units on Barrow Island.
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By GlobalDataA carbon dioxide injection project and a domestic gas plant will also be built on the Barrow Island.
The Gorgon and Jansz-Io gas fields contain 35.3 trillion cubic feet of natural gas.
The Wheatstone project is being developed as an LNG and domestic gas operation near Onslow, in the Pilbara region of Western Australia.
Final investment decision for the project was made in September 2011, following which construction commenced in December 2011. The project will have an initial capacity of 8.9 MTPA of LNG and also includes a domestic gas plant.
Image: Chevron’s new LNG carrier the Asia Energy constructed to support the company’s growing LNG operations. Photo: courtesy of Chevron Corporation.
