Photo by: Chevron
PERTH (miningweekly.com) – US energy major Chevron has inked a nonbinding heads of agreement (HoA) with China’s ENN LNG Trading Company for the delivery of liquefied natural gas (LNG) from the Gorgon project.
ENN was expected to receive up to 0.5-million tonnes a year of LNG over a ten-year period, with deliveries starting in 2018 or the first half of 2019.
“This is one more step in the development of our Australian gas business and our global LNG portfolio,” said Chevron’s midstream and development VP Mike Wirth.
“It also represents further progress with new LNG buyers in China who are poised to transform the LNG landscape in that country.”
The HoA with ENN followed a nonbinding LNG supply HoA with China Huadian Green Energy Company.
The Gorgon project is a joint venture between Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power.
Facilities being built on Barrow Island include an LNG facility with three processing units capable of producing 15.6-million tonnes a year of LNG, a carbon dioxide injection project and a domestic gas plant.
Chevron has unveiled a $10-billion plan to expand the Gorgon project with the addition of a fourth train, increasing total LNG production to about 20-million tonnes a year.