CHEVRON INCREASES LNG SALES TO
MELBOURNE, Australia, Nov. 9, 1995 -- Chevron today announced that effective April 1, 1996, it will increase sales of liquefied natural gas (LNG) from the North West Shelf Gas Project (NWSGP) by more than 83,000 metric tons per year. The LNG is sold to eight major electric and gas utilities in Japan.
Chevron Oil Trading currently sells approximately 1.17 million metric tons per year (its share of 122 cargoes) on a 20-year contract to these utilities. With this increase, annual sales to the Japanese companies will total approximately 1.25 million metric tons per year (its share of 131 cargoes) through the year 2009.
The LNG is produced from the NWSGP's LNG plant in northwestern Australia. Thanks in part to a successful de-bottlenecking at the plant, production capacity has increased steadily from the original 1989 design of approximately six million metric tons per year to its current capacity of over 7.5 million metric tons per year. Chevron, through its wholly owned subsidiary, Chevron Asiatic Limited (CAL), holds a one-sixth interest in the plant and receives a one-sixth interest of the production.
"We have placed considerable emphasis on maximizing revenue from our assets while maintaining reliable and safe operations," said Richard Matzke, president of Chevron Overseas Petroleum. "One successful example of this emphasis is the increase of production capacity by 25 percent over the past six years, "he added.
"We are extremely pleased with the increase in sales to the Japanese utilities," said Al Caccamo, president of Chevron Oil Trading, the unit of Chevron responsible for marketing the LNG.
"Over the past decade, we have established and enhanced a close relationship with the Japanese utilities, and we look forward to many more years of successful business together," said Caccamo, noting that one recent testament of this close relationship was demonstrated on September 27 by the successful delivery of the 500th cargo of NWSGP LNG to the Japanese utilities.
Notes to editors:
- The North West Shelf Gas Project's LNG plant began operating in 1989. The six equal-share participants are: Chevron Asiatic Limited, BHP Petroleum (North West Shelf) Pty. Ltd., BP Developments Australia Ltd., Japan Australia LNG (MIMI) Pty. Ltd., Shell Development (Australia) Pty. Ltd., and Woodside Petroleum Ltd.
- Chevron Asiatic Limited has contracts with the following Japanese utility companies: The Tokyo Electric Power Company, Inc., Chubu Electric Power Company, Inc., The Kansai Electric Power Co., Inc., The Chugoku Electric Power Company, Inc., Kyushu Electric Power Company, Inc., Tokyo Gas Co., Ltd., Osaka Gas Co., Ltd., and Toho Gas Co., Ltd.
Updated: November 1995