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September 18, 2011

Apache Julimar, Kyushu Electric sign Wheatstone LNG agreement

Apache Julimar and its partners have executed a long-term sales and purchase agreement with Kyushu Electric Power Company to supply liquefied natural gas (LNG) from the Wheatstone Project in Western Australia. Under the contract, the Chevron-operated Wheatstone will supply 700,000t of L

By cms admin

Apache Julimar and its partners have executed a long-term sales and purchase agreement with Kyushu Electric Power Company to supply liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

Under the contract, the Chevron-operated Wheatstone will supply 700,000t of LNG per year for up to 20 years.

Apache Julimar holds a 13% interest in the project and will supply 100,000t of natural gas per year from the Julimar and Brunello fields in offshore licence WA-356-P.

The LNG sales agreements are subject to a positive final investment decision from the Wheatstone partners.

The front-end engineering and design for the project’s first phase is expected to be completed by the end of this year.

Apache Julimar holds a 65% interest in the Julimar-Brunello blocks and the WA-356-P partners’ share of the LNG facility.

Apache’s expected net share of LNG sales to Kyushu Electric is equivalent to approximately 13 million cubic feet of natural gas per day.

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