Chevron announced that its Australian subsidiaries and Nippon Oil Corporation have signed a Heads of Agreement (HOA) for the delivery of 0.3 million metric tons per year (MTPY) of liquefied natural gas (LNG) for 15 years from the Chevron-operated Gorgon Project in Western Australia.
Jim Blackwell, president, Chevron Asia Pacific Exploration and Production, welcomed the agreement saying it would help underpin the importance of the Gorgon Project to growing LNG markets.
"We are pleased to have Nippon Oil as a customer of the Gorgon Project. The agreement is another step towards commercializing our equity natural gas in Australia."
John Gass, president, Chevron Global Gas, said "We have a long history of working with Nippon Oil and, with this agreement, are proud to add a new dimension to that relationship."
Gass added that, "Our agreements with Nippon Oil and other leading Japanese and Korean energy companies demonstrate that Chevron is strongly positioned to meet long-term demand growth in Asia-Pacific."
Chevron is the operator of the Gorgon Project and holds an approximate 47 percent interest.
The initial Gorgon Project development, in northwestern Australia, will include a three-train, 15 million-metric-tons-per-year liquefied natural gas facility and a domestic gas plant.
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