Chevron Corp has signed a preliminary agreement to sell Japan’s Tohoku Electric one million tonnes of liquefied natural gas per year for 20 years, the U.S. oil major said on Sunday.
The gas will come from its Wheatstone plant in Australia, Roy Krzywosinski, Chevron Austalia’s managing director told reporters in Adelaide, adding that with this sale more than 80 percent of the gas from the 8.9 million tonnes per year (mtpa) Wheatstone project had been sold to Asian customers.
Wheatstone, located off the coast of Western Australia, is currently under construction, with the first gas shipments expected in 2016.
Chevron plans to eventually expand the production of the $29 billion Wheatstone LNG plant to 25 mtpa.
Chevron is positioning itself to become one of the largest LNG producers in Australia. Its $37 billion Gorgon project, also off Western Australia, will produce 15 mtpa by 2014.