Subscribe to RSS feedChevron LNG deal puts Ashburton North port in frame
Chevron and Tokyo Electric Power Company (Tepco) have signed a heads of agreement for the delivery of 4.1m tonnes a year (mtpa) of liquefied natural gas (LNG) for up to 20 years from the Wheatstone natural gas project.
Rounded off: LNG tanks in Japan to be supplied for the Wheatstone Project.
Though neither company put a price on the deal, Western Australian premier Colin Barnett signalled it was about $90bn.
Under the agreement, Tepco also intends to acquire 15% of Chevron’s equity share in the licenses over the Wheatstone field and an 11.25% interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in Western Australia.
Chevron Asia Pacific Exploration and Production president Jim Blackwell welcomed Tepco as a foundation customer and investor in the Wheatstone Project, saying the support of an experienced LNG customer was a major boost.
"This landmark agreement provides a vital LNG market for the Wheatstone Project," Mr Blackwell said.
The Wheatstone project would bring new development to the Onslow area by giving impetus for a deep-water port and the 8000 ha strategic industrial estate at Ashburton North, Mr Barnett said.
The WA Government and proponents, including Chevron, were working to obtain planning, heritage and environmental approvals for the Ashburton North estate, he said.
Chevron Australia managing director Roy Krzywosinski confirmed its interest, saying Ashburton North was "ideally situated to process our significant equity gas resources and new third-party resources that are located in the West Carnarvon Basin".
"We look forward to welcoming new partners to the Wheatstone Project in the near future."
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