Regional LNG: Release: Osaka Gas: Signing of HoA with Chevron Australia for the purchase of Gorgon LNG

December 8, 2005 ? Osaka Gas Co., Ltd (President: Hirofumi Shibano) and Chevron Australia Pty Ltd (Managing Director: James Johnson) signed the Heads of Agreement for the sales and purchase of liquefied natural gas (LNG) produced from the Gorgon Project located at North West Australia.

The Gorgon Project involves the production of natural gas consisting primarily of Gorgon gas and Jansz gas offshore North West Australia which account for approximately 1.1 trillion cubic meters of vast gas reserves, and liquefaction of the natural gas at a production facility (2 liquefaction trains, 10MTPA) to be constructed at Barrow Island in Western Australia. The LNG is planned to be supplied to Japan and other Asian Pacific markets including North America .

With this agreement as a foothold, Osaka Gas and Chevron Corporation will study collaborations in various areas of the LNG business. As part of this collaboration, our company is currently discussing the detailed conditions of equity acquisition from the Gorgon project. (end of release)

Basic Terms and Conditions
- Seller: Chevron Australia
- Buyer: Osaka Gas Co., Ltd
- Contract Term: 25 years from FY 2010
- Contract Volume: 1.5MTPA
- Delivery: FOB (Free on Board)

Source: Osaka Gas Co Ltd