US oil firm Chevron has agreed to sell almost 3 million tonnes per year (tpy) of LNG from its Gorgon project in Australia, paving the way for a final investment decision.
Chevron revealed it would be selling 1.375 million tpy of LNG to Osaka Gas over a 25-year agreement, 1.1 million tpy to Tokyo Gas, and 0.5 million tpy to South Korea’s GS Caltex for up to 20 years.
Under the agreement, Chevron will also sell an equity share of 1.25% in the Gorgon project to Osaka Gas and another 1% to Tokyo Gas - reducing Chevron's stake to 47.75%.
While the US company did not disclose financial details of the LNG deals, it’s thought that the contracts could be worth more than $60bn in exports over 25 years. Respected news agency Reuters reports that further Gorgon LNG sales could be expected in the coming months.
The $42bn Gorgon project is awaiting a final investment decision from Chevron and its partners, while it cleared another hurdle recently when the national and Western Australia state government agreed to accept joint liability for storing generated CO2.