Chevron and Tohoku Electric Sign Wheatstone LNG Agreement

SAN RAMON, Calif.--(BUSINESS WIRE)--

Chevron Corporation CVX today announced that its Australian subsidiaries have signed binding long-term Sales and Purchase Agreements (SPAs) with Tohoku Electric Power Company, Inc. (Tohoku) to supply liquefied natural gas (LNG) from the Chevron-operated Wheatstone Project in Western Australia.

Under the agreements, Chevron subsidiaries, together with subsidiaries of Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Tohoku with 0.9 million tonnes per annum of LNG for up to 20 years.

Joe Geagea, president, Chevron Gas and Midstream, said, “These agreements with Tohoku create a new partnership between our companies and demonstrate the benefits of buyers and sellers working together to ensure supply is brought to the market to meet growing LNG demand.”

Roy Krzywosinski, managing director, Chevron Australia, said, “We welcome the agreements with Tohoku, which mean that 85 percent of Chevron's equity LNG from Wheatstone is now committed to customers in Asia on a long-term basis. These agreements, combined with our ongoing exploration success, demonstrate that our Wheatstone and Gorgon projects in Australian are well-placed to meet the growing demand for natural gas in the Asia-Pacific region.”

The Wheatstone Project is located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia. The project will consist of two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant.

The Wheatstone Project is a joint venture between Australian subsidiaries of Chevron (64.14 percent), Apache Energy (13 percent), Kuwait Foreign Petroleum Exploration Company (7 percent), Shell (6.4 per cent), and Kyushu Electric Power Company, Inc. (1.46 percent), together with PE Wheatstone Pty Ltd. (8 percent).

Chevron also holds an 80.17 percent equity interest in the Wheatstone and Iago fields that provide 80 percent of the feed gas to the Wheatstone Project. The participants in the fields are PE Wheatstone Pty Ltd. (10 percent) as well as Australian subsidiaries of Shell (8 percent) and Kyushu Electric Power Company, Inc. (1.83 percent).

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.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.

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,” “forecasts,” "projects," "believes," “seeks,” “schedules,” “estimates,” “budgets,” “outlook” 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, many of which are beyond the company's control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements 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 the company's net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations, industry-specific taxes and changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; and general economic and political conditions. The reader 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.