Chevron's Australian subsidiaries have secured three long-term sales and purchase agreements (SPAs) for the company's share of liquefied natural gas (LNG) in the Gorgon project, Australia.
The agreements involve total supply of about 3 million tons per year (MTPA) of LNG to GS Caltex, Tokyo Gas and Osaka Gas.
Osaka Gas will be supplied 1.375MTPA of LNG by Chevron for 25 years in addition to the acquisition of 1.25% equity in the Gorgon Project.
Over 25 years, Tokyo Gas will be provided with 1.1MTPA and will acquire a 1% equity stake.
Supply to both the companies is likely to begin in the second half of 2014.
Chevron International Gas and Chevron Australia have also entered into separate contracts with GS Caltex for supply of 0.5MTPA of LNG for up to two decades.
GS Caltex will receive the LNG from the Gorgon project and other gas in the international Chevron portfolio. Chevron holds a 50% stake in GS Caltex.
The project comprises a domestic gas plant, a carbon dioxide injection project and a three-train, 15MTPA LNG unit.