Energy giant Chevron has announced that its Australian subsidiaries have inked a deal with China’s ENN LNG Trading Company for the delivery of liquefied natural gas (LNG) to China from its Gorgon natural gas project in Australia.
ENN LNG Trading Company Limited is one of the subsidiaries of ENN Energy Holdings Ltd., which is one of the largest natural gas distribution companies in China.
The Gorgon Project is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).
Under the terms of the agreement, ENN will receive up to 0.5 million metric tons annually (MTPA) of gas over the course of 10 years with deliveries scheduled to commence in 2018 or the beginning of 2019.
“This is one more step in the development of our Australian gas business and our global LNG portfolio,” said Mike Wirth, executive vice president, Chevron Midstream and Development.
“It also represents further progress with new LNG buyers in China who are poised to transform the LNG landscape in that country.”
“As first LNG production from the Gorgon Project draws near, we welcome ENN as a new customer,” said Roy Krzywosinski, managing director, Chevron Australia.
“This deal shows the competitiveness of LNG supply from Chevron’s Australian projects.”
Aside from the Gorgon project, Chevron’s Australian subsidiaries are also developing the Wheatstone Project in the Pilbara region of Western Australia.