Chevron inks additional LNG supply deal with Japan's TEPCO
19 June 2012
US energy giant Chevron Corp yesterday said that it would supply additional liquefied natural gas (LNG) to Japan's Tokyo Electric Power Co (TEPCO) as well as a 10 per cent of its stake in the Wheatstone liquefied natural gas project.
Under additional binding agreements signed yesterday, the San Ramon, California-based energy company will supply TEPCO with additional 400,000 tonnes per annum (MTPA) of LNG from its Wheatstone Project in Western Australia, for up to 20 years.
Tokyo-based TEPCO will also acquire a 10-per cent stake in Chevron's Wheatstone field licenses and an 8 per cent stake in Wheatstone natural gas processing facilities.
The two companies did not reveal the financial value for the agreements.
These agreements, and the previously announced sales and purchase agreement, increases TEPCO's total Wheatstone LNG offtake to 4.2 MTPA.
Chevron said that Tokyo Electric increased its long-term contract for liquefied natural gas by 400,000 million tons per year, or nearly 11 per cent, from Chevron's Wheatstone natural gas project.