Chevron Australia has recently signed multiple agreements with Japanese power utility, Kyushu Electric Power, for the delivery of liquefied natural gas (LNG) from the Chevron-operated Gorgon and Wheatstone natural gas projects.
Under the Heads of Agreements (HOAs), Kyushu Electric anticipates receiving 0.3 million tonnes per annum (mtpa) of LNG from the Gorgon Project for 15 years.
Under the agreement, Kyushu Electric also intends to acquire 1.83 percent of Chevron's equity share in the Wheatstone field licenses and a 1.37 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in northwestern Australia.
Additionally, Kyushu Electric expects to purchase 0.7 mtpa of LNG from the Wheatstone Project for up to 20 years. Including this equity participation, Kyushu Electric will take delivery of 0.8 mtpa of LNG from the Wheatstone Project.
Chevron Australia Managing Director Roy Krzywosinski said the Kyushu Electric agreements provide both increased momentum for the Wheatstone Project and an important customer for the Gorgon Project.
Construction of the Gorgon Project began in the second half of 2009, with first gas planned for 2014. The initial project design includes a 15 MTPA LNG facility and domestic gas plant on Barrow Island in northwestern Australia.
Chevron is the operator and has an approximate 47 percent interest in the project.
The Wheatstone Project entered the front-end engineering and design phase in July 2009 and expects to make a final investment decision in 2011.
Plans for the initial phase of the project include facilities with the capacity to process 8.6 mtpa of LNG and a domestic gas plant at Ashburton North, south of Onslow in Western Australia. Chevron is the operator and holds an approximate 75 percent interest in the project.
In other news, Chevron Australia has announced further drilling success in the Greater Gorgon Area in the Carnarvon Basin offshore Western Australia.
The Yellowglen-1 exploration well is located in the WA-268-P permit area approximately 250km northwest of Onslow. It was drilled to a total depth of 2,760 metres using the 'ENSCO 7500' dynamically positioned, semi-submersible rig. Results indicate a gas column of approximately 137 metres.
Chevron Australia is the operator of WA-268-P with a 50 percent interest.