China to get Chevron鈥檚 Aussie LNG
Print Edition
US-based Chevron Corp plans to supply liquefied natural gas from its Australian Gorgon project 鈥 the world鈥檚 most expensive 鈥 to China after signing a preliminary agreement with ENN Energy Holdings Ltd.
Chevron said that once the deal is finalized, its Australian subsidiary will supply up to 500,000 tons of LNG per year over 10 years to ENN Energy subsidiary ENN LNG Trading Co when deliveries start in 2018 or the first half 2019.
Mike Wirth, Chevron鈥檚 executive vice president for midstream and development, said yesterday that the deal represents further progress of the US$54 billion project with LNG buyers in China who are poised to transform the LNG landscape in the country.
鈥淭his is one more step in the development of our Australian gas business and our global LNG portfolio,鈥 Wirth said in a statement.
Chevron had previously announced a deal to supply 1 million tons of LNG per year to China Huadian Group鈥檚 subsidiary China Huadian Green Energy Co over 10 years starting in 2020.
The Gorgon project is on track to export its first cargo from Barrow Island off Western Australia to Asian customers in the first quarter of 2016.
A commissioning cargo of LNG was shipped to the plant from Indonesia aboard Chevron Asia Excellence gas carrier in order to cool down the export system which hosts processing units, a necessary move to liquefy the natural gas from the adjacent fields.
The Gorgon project is capable of producing 15.6 million tons of LNG from the development of the Gorgon field and nearby Jansz-Io field.
The project is a joint venture between Chevron with a 47.3 percent stake, Exxon Mobil and Royal Dutch Shell, each with 25 percent, and three Japanese utilities.
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