Chevron signed gas sales agreements for Gorgon LNG project in Australia

Chevron signed 3 binding long-term Sales and Purchase Agreements for a total supply of about 4.1 bcm/year of LNG to Osaka Gas, Tokyo Gas, and GS Caltex from the Gorgon LNG project. Chevron will supply Osaka Gas 1.9 bcm/year of LNG for 25 years. Osaka Gas will also purchase 1.25% equity in the Gorgon Project. Tokyo Gas will be supplied 1.5 bcm/year over 25 years and will purchase a 1% equity stake. Supply from both agreements is expected to commence in the second half of 2014. Chevron signed separate agreements with GS Caltex for 0.68 bcm/year of LNG for up to 20 years. The LNG sold to GS Caltex will be supplied from the Gorgon project and other gas within the global Chevron portfolio. GS Caltex is 50% owned by Chevron. Chevron also signed a Heads of Agreement (HOA) with the Korea Gas Corporation (KOGAS) for 2 bcm/year of LNG from the Gorgon project, with an option to extend the 15-year agreement for a further five years. The parties are also discussing LNG sales and an equity purchase from Chevron's Wheatstone project. Chubu Electric Power is to acquire a 0.4% stake in the project from Chevron. The company will also sign a 25-year supply deal for 2 bcm/year of LNG as from 2014. In January 2010, Chevron and Nippon Oil signed two Heads of Agreement (HOA) for the delivery of 0.4 bcm/year of LNG for 15 years with both Nippon Oil and Kyushu Electric.