press release

Chevron Press Release - Chevron Participates In Expansion Of Natural Gas Project Offshore Australia

SAN FRANCISCO, Oct. 17, 1996 -- Chevron, as a member of the North West Shelf Project in Australia, today announced a significant step towards a major, $5-billion expansion of the world-class liquefied natural gas (LNG) project.

A formal proposal was submitted this week in Osaka to the eight Japanese power and gas utility customers who purchase LNG, outlining a plan for a two-train LNG expansion, almost doubling the project's existing sales capacity of 7.5 million tons per year. Subject to the requirements of the Japanese customers, the 7-million-ton expansion could be on stream as early as 2003.

The expansion would include new offshore production facilities and LNG shipping. Total cost of the expansion is expected to approximate $5 billion. The expansion project also allows for growth in domestic gas sales and for the extension of existing contracts.

The proposal responds to indications of interest by the Japanese customers to purchase additional LNG from the North West Shelf Project. The project has an excellent reputation for providing its customers with a stable and reliable supply of Australian LNG.

"Over the past decade, we have established and enhanced a close relationship with the Japanese utilities, and we look forward to many more decades of successful business together," said John Gass, managing director of Chevron Asiatic, the unit of Chevron responsible for its activities in Australia.

"We are excited about the prospect of expanding our operations in Australia, and extending our contracts," said Richard Matzke, president of Chevron Overseas Petroleum. "Having already increased production capacity by 25 percent over the past six years, our business is growing well into the 21st century," he added.

Notes to editors:

1. 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.

2. Chevron Oil Trading Company, the unit of Chevron responsible for marketing the LNG, currently sells approximately 1.25 million metric tones per year (its share of 131 cargoes) on a 20-year contract to these utilities.

3. Chevron Oil Trading Company's clients are: 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: October 1996