Chevron, Chubu sign LNG deal

Chevron, Chubu sign LNG deal

SYDNEY: Chevron Australia announced on Tuesday it had signed a 25-year agreement to supply Japan's Chubu Electric Co with liquefied natural gas (LNG) in a deal the Australian government said was worth A$10 billion (US$07.35 billion).

Chevron Australia said Tokyo Gas would receive 1.5 million tons of LNG annually from the Gorgon field off the Western Australia coast from 2010 under the heads of agreement signed Tuesday in Perth.

"The agreement highlights the momentum behind the Gorgon Project and is a significant step towards the further commercialization of the Gorgon Area gas resources," Chevron Global Gas president John Gass said.

The deal follows a $6 billion agreement last week to supply LNG to Japan's Tokyo Gas.

The Gorgon field is estimated to have reserves twice the size of the existing Northwest Shelf field, which has a A$25 billion dollar export deal with China. -- AFP