Chevron signs LNG agreement with Tohoku

Chevron Corporation and Tohoku Electric Power Company have signed long-term sales and purchase agreements (SPAs) to supply liquefied natural gas (LNG) from the Wheatstone Project in Western Australia, which is operated by Chevron.

Under the agreements, Chevron subsidiaries, together with subsidiaries of Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Tohoku with 0.9 million tonnes of LNG per annum for up to 20 years.

“These agreements with Tohoku create a new partnership between our companies and demonstrate the benefits of buyers and sellers working together to ensure supply is brought to the market to meet growing LNG demand,” said Joe Geagea, from Chevron Gas and Midstream.

“We welcome the agreements with Tohoku, which mean that 85% of Chevron’s equity LNG from Wheatstone is now committed to customers in Asia on a long-term basis,” said Roy Krzywosinkski, managing director of Chevron Australia.

“These agreements, combined with our ongoing exploration success, demonstrate that our Wheatstone and Gorgon projects in Australia are well placed to meet the growing demand for natural gas in the Asia-Pacific region.”

The Wheatstone Project is located at Ashburton North, 12 km west of Onslow in Western Australia. The project will consist of two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant.