Chevron, China Huadian sign long term LNG supply agreement

Chevron, China Huadian sign long term LNG supply agreement

11:15 AM, 22nd December 2015
Chevron, China Huadian sign long term LNG supply agreement
The Asia Energy is one of Chevron's new liquefied natural gas (LNG) carriers constructed to support the company's growing LNG operations.

SAN RAMON, US: Chevron USA Inc, a wholly-owned subsidiary of Chevron Corporation said that it has signed a non-binding heads of agreement (HOA) with China Huadian Green Energy Co Ltd, for the supply of liquefied natural gas (LNG).

China Huadian is expected to receive up to 1 million metric tonne per annum of LNG over 10 years starting in 2020.

“This is an important step in the commercialization of Chevron’s natural gas holdings in Australia and the establishment of our global liquefied natural gas portfolio,” said Pierre Breber, executive VP, Chevron Gas and Midstream. “As Chevron continues to grow into one of the world’s largest LNG suppliers, this agreement represents further progress and diversification of our sales portfolio.”

“We welcome the opportunity to supply LNG to China Huadian and look forward to building lasting relationships with our customers in the region as the Chevron-operated Gorgon and Wheatstone projects move into operations,” said Roy Krzywosinski, managing director, Chevron Australia. “The China Huadian agreement demonstrates Chevron’s equity gas from Australia is well-placed to meet the growing demand for natural gas in the Asia-Pacific region.”

China Huadian Green Energy Co Ltd is a subsidiary of China Huadian Group, which is one of the largest state-owned power generation companies and has a leading role in gas-fired power generation in China.

The Gorgon project is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

The Gorgon project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built on Barrow Island include an LNG facility with three processing units capable of producing 15.6 metric tonnes per annum of LNG, a carbon dioxide injection project and a domestic gas plant.

Chevron’s subsidiaries in Australia are also developing the Wheatstone project as an LNG and domestic gas operation near Onslow, in the Pilbara region of Western Australia. The project’s initial capacity is expected to be 8.9 metric tonne per annum of LNG. The project also includes a domestic gas plant.

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