Chevron Secures Wheatstone LNG Sales Agreements With TEPCO
SAN RAMON, Calif., July 26, 2011 – Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed binding Sales and Purchase Agreements (SPAs) with Tokyo Electric Power Company (TEPCO) for the delivery of liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia.
Under the agreements, Chevron, together with Apache Energy and Kufpec, will deliver up to 3.1 million tons per annum (MTPA) of LNG to TEPCO for a period of up to 20 years.
TEPCO is also in discussions with Chevron to purchase an equity share in the titles covering the Wheatstone fields and a percentage of Chevron's share of the Wheatstone downstream processing facilities.
John Gass, president, Chevron Gas and Midstream, welcomed TEPCO as a foundation customer and potential investor in the Wheatstone Project.
"TEPCO is one of the world's leading LNG customers. Its support for Chevron's Wheatstone Project reinforces the strength of the relationship between the two companies that has been built up over many years."
Roy Krzywosinski, managing director, Chevron Australia, said the Wheatstone Project had completed the front-end engineering and design phase and Chevron remains on track to make a final investment decision (FID) in 2011.
"The TEPCO agreements and other LNG agreements we are finalizing give Wheatstone great momentum. The Ashburton North site earmarked for the LNG processing plant is ideally located to unlock the significant gas resources in the western Carnarvon basin."
The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 12 kilometers west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
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Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," “schedules,” "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: July 2011