Chevron inks Australia LNG supply deal with Japan refiner JX Nippon
An Australian subsidiary of Chevron has signed a sales and purchase agreement with Japan’s JX Nippon Oil and Energy for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon project.
Under the binding agreement, JX Nippon Oil and Energy will receive 300,000 tons/year of LNG from the Gorgon project for 15 years.
"We are pleased to have JX Nippon Oil and Energy as a customer of the Gorgon project,” said John Gass, president of Chevron gas and midstream.
"The agreement is another step towards commercializing our equity natural gas in Australia, further demonstrating Chevron's leading ability to meet long-term demand growth in Asia-Pacific,” added Roy Krzywosinski, managing director of Chevron Australia.
Construction of the Gorgon project is progressing well, Chevron officials said, with first gas expected in 2014.
Chevron is the operator of the Gorgon project and holds an approximate 47% interest.
The initial development of the $37bn Gorgon project, situated in northwestern Australia, will include a three-train, 15mn tons/year LNG facility and a domestic gas plant.
JX Nippon is Japan’s No. 1 refiner. Financial terms were not disclosed.
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