10 September 2009

Chevron inks gas deal with South Korea, Japan

Oil company giant Chevron Corp. signed deals worth $60 billion (AU$70 billion) to supply liquefied natural gas to Japan and South Korea.

Chevron’s Australian subsidiary will supply nearly 3 million tons (2.72 metric tons) a year to the countries, generating AU$70 billion in exports over the next 25 years.

Much of the gas will come from the yet-to-be developed Gorgon gas field off Australia’s far northwest coast. The Gorgon project is under development by the Australian units of Chevron, ExxonMobil Corp., and Royal Dutch Shell PLC.

“This builds upon our longstanding relationship with these companies and represents a major step toward the successful commercialization of the Gorgon Project,” said Jim Blackwell, president of Asia Pacific Exploration and Production for Chevron.

Chevron officials said the company will supply Japan’s Osaka Gas with 1.375 million tons per year, Tokyo Gas will get 1.1 million tons, and GS Caltex of South Korea 0.5 million tons.

“With Osaka Gas and Tokyo Gas, we have as foundation customers two of the most experienced LNG buyers in the largest LNG market in the world,” said John Gass, president, Chevron Global Gas. “The agreements with GS Caltex provide our initial entry into the important Korean LNG market and GS Caltex’s first expansion from refining, petrochemicals, and power into LNG.”

PetroChina Co. signed a $43 billion (AU$50 billion) deal in August to buy 2.5 million tons per year of liquefied natural gas from the Gorgon gas field.

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