Just yesterday, Chevron Corporation announced that its Australian subsidiaries have signed Sales and Purchasing Agreements with Tokyo Electric Power Company (TEPCO). According to the contract, TEPCO will receive up to 3.1m tons per annum of LNG for up to two decades.
In addition to this sizeable LNG deal, the duo are also in discussion over the brokerage of an equity share in the titles covering the Wheatstone fields. The discussion also incorporates negotiation over a percentage of Chevron’s share of the Wheatstone downstream processing facilities.
John Gass, President of Chevron Gas and Midstream, welcomed TEPCO as a foundation customer and potential investor in the Wheatstone Project. He commented, $quot;TEPCO is one of the world's leading LNG customers. Its support for Chevron's Wheatstone Project reinforces the strength of the relationship between the two companies that has been built up over many years.”
Roy Krzywosinski, Managing Director of Chevron Australia, said the Wheatstone Project had completed the front-end engineering and design phase. He added that Chevron remains on track to make a final investment decision later this year.
Krzywosinski remarked, $quot;The TEPCO agreements and other LNG agreements we are finalising give Wheatstone great momentum. The Ashburton North site earmarked for the LNG processing plant is ideally located to unlock the significant gas resources in the western Carnarvon basin.”
The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 12 kilometers west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains, with a combined capacity of 8.9m tons per annum, as well as a domestic gas plant.