Tokyo Electric signs equity and additional LNG offtake agreements with Chevron for Wheatstone Project

18 June 2012

Chevron Corporation’s Australian subsidiaries have signed additional binding agreements with Tokyo Electric Power Company (TEPCO) for liquefied natural gas (LNG) offtake and equity interests in the Chevron-operated Wheatstone Project.

Under the agreements, TEPCO will purchase an additional 0.4 million tons per annum (MTPA) of LNG from the Wheatstone Project for up to 20 years. In addition TEPCO, through a related company, will acquire from Chevron a 10% participating interest in the Wheatstone field licenses and an 8% interest in the Wheatstone natural gas processing facilities.

These agreements, and the previously announced sales and purchase agreement, increases TEPCO’s total Wheatstone LNG offtake to 4.2 MTPA.

More than 80% of Chevron’s equity LNG from Wheatstone is now covered under long-term off-take agreements with customers in Asia, according to Joe Geagea, president, Chevron Gas and Midstream.

The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.

In 2011, Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company (KUFPEC), signed a binding sales and purchase agreement (SPA) to deliver up to 3.1 MTPA to TEPCO for a period of 20 years. The additional agreements do not involve Apache Energy or KUFPEC.