Agreement to supply 0.9 million tonnes annually from the Wheatstone
Project for up to 20 years
SAN RAMON, Calif.--(BUSINESS WIRE)--Oct. 1, 2013--
Chevron Corporation (NYSE: CVX) today announced that its Australian
subsidiaries have signed binding long-term Sales and Purchase Agreements
(SPAs) with Tohoku Electric Power Company, Inc. (Tohoku) to supply
liquefied natural gas (LNG) from the Chevron-operated Wheatstone Project
in Western Australia.
Under the agreements, Chevron subsidiaries, together with subsidiaries
of Apache Energy and Kuwait Foreign Petroleum Exploration Company, will
supply Tohoku with 0.9 million tonnes per annum of LNG for up to 20
years.
Joe Geagea, president, Chevron Gas and Midstream, said, “These
agreements with Tohoku create a new partnership between our companies
and demonstrate the benefits of buyers and sellers working together to
ensure supply is brought to the market to meet growing LNG demand.”
Roy Krzywosinski, managing director, Chevron Australia, said, “We
welcome the agreements with Tohoku, which mean that 85 percent of
Chevron’s equity LNG from Wheatstone is now committed to customers in
Asia on a long-term basis. These agreements, combined with our ongoing
exploration success, demonstrate that our Wheatstone and Gorgon projects
in Australian are well-placed to meet the growing demand for natural gas
in the Asia-Pacific region.”
The Wheatstone Project is located at Ashburton North, 7.5 miles (12
kilometers) west of Onslow in Western Australia. The project will
consist of two LNG trains with a combined capacity of 8.9 million tonnes
per annum and a domestic gas plant.
The Wheatstone Project is a joint venture between Australian
subsidiaries of Chevron (64.14 percent), Apache Energy (13 percent),
Kuwait Foreign Petroleum Exploration Company (7 percent), Shell (6.4 per
cent), and Kyushu Electric Power Company, Inc. (1.46 percent), together
with PE Wheatstone Pty Ltd. (8 percent).
Chevron also holds an 80.17 percent equity interest in the Wheatstone
and Iago fields that provide 80 percent of the feed gas to the
Wheatstone Project. The participants in the fields are PE Wheatstone Pty
Ltd. (10 percent) as well as Australian subsidiaries of Shell (8
percent) and Kyushu Electric Power Company, Inc. (1.83 percent).
Chevron is one of the world’s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for,
produces and transports crude oil and natural gas; refines, markets and
distributes transportation fuels and lubricants; manufactures and sells
petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops the energy resources
of the future, including biofuels. Chevron is based in San Ramon, Calif.
More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for
the Purpose of “Safe Harbor” Provisions of the Private Securities
Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking
statements about Chevron's activities in Australia. Words such as
“anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,”
"projects," "believes," “seeks,” “schedules,” “estimates,” “budgets,”
“outlook” and similar expressions are intended to identify such
forward-looking statements. The statements are based upon management's
current expectations, estimates and projections; are not guarantees of
future performance; and are subject to certain risks, uncertainties and
other factors, many of which are beyond the company's control and are
difficult to predict. Among the important factors that could cause
actual results to differ materially from those in the forward-looking
statements are changes in prices of, demand for and supply of crude oil
and natural gas; actions of competitors; the inability or failure of the
company’s joint-venture partners to fund their share of operations and
development activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas
development projects; potential delays in the development, construction
or start-up of planned projects; the potential disruption or
interruption of the company’s net production or manufacturing facilities
or delivery/transportation networks due to war, accidents, political
events, civil unrest, or severe weather; government-mandated sales,
divestitures, recapitalizations, industry-specific taxes and changes in
fiscal terms or restrictions on scope of company operations; foreign
currency movements compared with the U.S. dollar; and general economic
and political conditions. The reader should not place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. Unless legally required, Chevron undertakes no
obligation to update publicly any forward-looking statements, whether as
a result of new information, future events or otherwise.
Source: Chevron Corporation
for Chevron
Alex Yelland, Singapore, +65 9720 2560
