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|Chubu Electric To Buy LNG From Wheatstone Project In Australia|
|=To procure 1 million tpy of LNG for up to 20 years|
Chubu Electric Power Company will purchase LNG from Wheatstone LNG Project in Australia, with capacity of 8.9 million tons per year, which was revealed by the operator of the project Chevron U.S.A. on April 17th (local time in the U.S.). Chevron signed a heads of agreement (HOA) with Chubu Electric to sell 1 million tpy of LNG for up to 20 years.|
The three Wheatstone partners, Chevron, the U.S. Apache Corporation and Kuwait Foreign Petroleum Exploration Company (KUFPEC) will supply LNG to Chubu Electric from Wheatstone.
Chubu Electric is the fourth buyer, who reached HOA on LNG produced at Wheatstone. Chevron officially concluded sale and purchase agreement (SPA) with Tokyo Electric Power Company (TEPCO) and Kyushu Electric Power Company during July-September 2011 after it had signed HOAs with both companies to sell 3.1 million tpy and 0.7 million tpy respectively. In addition, Chevron also entered into HOA with Korea Gas Corporation (KOGAS) to sell 1.5 million tpy of LNG.
The sales volume to the four companies will amount to 6.3 million tpy in total. As a result, Chevron has fixed sales destinations, which accounts for about 71% of total LNG production volume at Wheatstone LNG Project.
In the meantime, Wheatstone LNG Project is 73.6% owned by Chevron with Apache holding 13% and KUFPEC 7%, in addition to which Shell and Kyushu Electric decided to each acquire 6.4% and 1.46% interest in the project.
|last modified : Tue 24 Apr, 2012 [10:49]|