press release

Chevron Press Release - Chevron Announces Initial Agreement To Provide Australian Natural Gas To Taiwan

SAN FRANCISCO, Nov. 15, 1999 -- Chevron today announced that Australia LNG Pty. Ltd. has reached an understanding with Tuntex Gas Corp. of Taiwan concerning the supply of 4 million tons a year of liquid natural gas from Australia beginning in 2003.

Australia LNG acts in the interests of a group of U.S., Australian, British and Japanese companies seeking to develop Australian gas resources.

Tuntex Gas intends to develop a major port and industrial harbor, including an LNG import terminal, in Taoyuan County, northern Taiwan. LNG imported by Tuntex Gas would be regassified and sold to major industrial customers in Taiwan, particularly power stations.

ALNG Pty. Ltd. has signed a Memorandum of Understanding to work with Tuntex Gas in developing the necessary commercial and technical arrangements for LNG supply, particularly to Taipower's new power station at Ta Tan. Final agreement will depend upon Tuntex successfully securing customers within Taiwan.

"We are very pleased with this development and it undoubtedly signals the confidence prospective purchasers have in Australia LNG's ability to be competitive and responsive to their needs," said Dick Matzke, a Chevron Corp. board director and president of Chevron Overseas Petroleum Inc.

Arthur Dixon, president of Australia LNG Pty. Ltd., said, "This is a very important first step in securing additional sales of LNG from Australia. However, much work is required before a final sale and purchase agreement can be concluded. We intend to work closely with Tuntex Gas to assist them in this exciting development."

Australia LNG Pty. Ltd. was established earlier this year as a marketing organization to match potential Asian LNG market opportunities (outside of Japan) with potential sellers of LNG in Australia. ALNG acts as agent for Chevron Australia Pty. Ltd., BP Developments Australia Pty. Ltd., BHP Petroleum (Northwest Shelf) Pty. Ltd., Japan Australian LNG (MIMI) Pty. Ltd., Shell Development (Australia) and Woodside Energy Ltd.

Updated: November 1999