Regional LNG: Chevron eyeing more Gorgon LNG sales to Japan

US oil major Chevron Corporation said on Monday it planned to secure more LNg sales from Chevron-led Gorgon LNG project in Australiato Japan, the world's largest LNG consumer.

Chevron Australia Pty Ltd, a subsidiary of Chevron Corporation, has signed a Heads of Agreement (HOA) with Chubu Electric Co. Inc. for the purchase of 1.5 million tonnes per annum (MTPA) of Chevron's share of Gorgon LNG over 25 years commencing in 2010. "The parties also are discussing the potential sale and purchase of an equity interest in the Gorgon Project, said Chevron in a statement.

Chevron Australia now has agreements in place that provide an opportunity to export more than 65 million tonnes of Australian LNG over 25 years from Chevron's share of the Gorgon Project.

The Gorgon Project, in which Chevron holds a 50 percent operating interest, is to include an initial two-train 10 MTPA LNG facility and a planned domestic gas plant located on Barrow Island. The project participants include the Australian subsidiaries of Shell (25 percent) and ExxonMobil (25 percent).(alex)