Chevron Corporation’s wholly-owned subsidiary Chevron U.S.A. has signed a non-binding liquefied natural gas (LNG) supply Heads of Agreement (HOA) with China Huadian Green Energy.
Once finalised, the 10-year agreement will see Chevron supply China Huadian with up to 1 million LNG metric tons per annum starting from 2020.
Pierre Breber, executive vice president, Chevron Gas and Midstream, said the agreement was an important step in the commercialisation of Chevron’s natural gas holdings in Australia and the establishment of the company’s global LNG portfolio.
“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,” Mr Breber added.
Chevron Australia’s managing director Roy Krzywosinski said the agreement would provide the company with massive opportunities in the Asia-Pacific region.
“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,” Mr Krzywosinski said.
“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.”
The Gorgon Project, which is a joint venture of the Australian subsidiaries of Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas, and Chubu Electric Power, combines the development of the Gorgon Field and the nearby Jansz-Io Field.
The project includes building a LNG facility with three processing units capable of producing 15.6 MTPA of LNG, a carbon dioxide injection project and a domestic gas plant.
The company is also developing the Wheatstone Project in the Pilbara region of Western Australia, which is expected to have an initial capacity of 8.9 MTPA of LNG.
