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19

Chevron To Supply Gas To Japanese Power Giant

The two companies have signed a heads of agreement for the sale of 1.5 million tonnes of liquefied natural gas

CHEVRON Australia has signed a $10-billion deal to supply gas to Japanese power company Chubu Electric from the huge Gorgon project in Western Australia, the ABC reported today.

The two companies have signed a heads of agreement for the sale of 1.5 million tonnes of liquefied natural gas (LNG) a year over 25 years, beginning in 2010.

Chevron said the two parties were also discussing the potential sale and purchase of an equity interest in the Gorgon project.

"Chubu Electric is one of the world's largest LNG consumers and this agreement is a significant step toward further commercialisation of the Gorgon Area gas resources," Chevron Australia managing director Jay Johnson said.