International: Chevron, TEPCO sign equity, additional LNG sales deals
Tuesday, June 19 2012 - 01:01 AM WIB
Chevron Corporation said that its Australian subsidiaries have signed additional binding agreements with Tokyo Electric Power Company (TEPCO) for liquefied natural gas (LNG) offtake and equity interests in the Chevron-operated Wheatstone Project.
Under the agreements, TEPCO will purchase an additional 0.4 million tons per annum (MTPA) of LNG from the Wheatstone Project for up to 20 years, Chevron said in a statement issued on Monday. In addition TEPCO, through a related company, will acquire from Chevron a 10 percent participating interest in the Wheatstone field licenses and an eight percent interest in the Wheatstone natural gas processing facilities.
These agreements, and the previously announced sales and purchase agreement, increases TEPCO's total Wheatstone LNG offtake to 4.2 MTPA.
"TEPCO is one of the world's leading LNG customers and we are pleased to expand the strong partnership between our two companies," said Joe Geagea, President, Chevron Gas and Midstream.
The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (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 8.9 MTPA and a domestic gas plant.
Editing by Reiner Simanjuntak