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Chevron and Tokyo Electric Sign Heads of Agreement for Wheatstone LNG

Chevron Chevron Corporation today announced that its subsidiary, Chevron Australia Pty Ltd, has signed a Heads of Agreement (HOA) with the Tokyo Electric Power Company (TEPCO) to deliver 4.1 million tons per annum (MTPA) of liquefied natural gas (LNG) for up to 20 years from the Wheatstone Project in northwestern Australia.

Under the agreement, TEPCO also intends to acquire 15 percent of Chevron's equity share in the Wheatstone field licenses and an 11.25 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in northwestern Australia.

"We are pleased to welcome TEPCO as a foundation customer and equity partner in the Wheatstone project as we move the development forward. This HOA further demonstrates that Wheatstone is well positioned to deliver energy to the Asia-Pacific region," said George Kirkland, executive vice president, Chevron Global Upstream and Gas.

"TEPCO is among the most experienced LNG buyers in the world. Their commitment to secure long-term LNG supplies from Wheatstone is a strong demonstration of their confidence in Chevron and represents another important step forward for the project," said John Gass, president, Chevron Global Gas.

The initial phase of the Wheatstone project will have the capacity to process 8.6 MTPA of LNG and will include a domestic gas plant. A final investment decision is expected in 2011.

In October, Chevron announced it had signed a binding agreement with Apache Julimar Pty Ltd, a subsidiary of the Apache Corporation, which will assume a 16.25 percent equity interest in the Wheatstone project, and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company k.s.c., which will assume a 8.75 percent interest in the project.

Published 05/12/09

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