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