Chevron signs Gor­gon deal

Pilbara News - - Business -

Chevron has pen­cilled in an­other gas sup­ply deal for its Gor­gon LNG project.

The US oil and gas gi­ant has signed a non-bind­ing Heads of Agree­ment with China’s ENN En­ergy to re­ceive 0.5 mil­lion met­ric tonnes of LNG a year for 10 years, with de­liv­er­ies start­ing in 2018, or the first half of 2019.

Chevron mid­stream and de­vel­op­ment ex­ec­u­tive vice-pres­i­dent Mike Wirth said it was one more step in the de­vel­op­ment of the com­pany’s Aus­tralian gas busi­ness and its global LNG port­fo­lio.

“As first LNG pro­duc­tion from the Gor­gon project draws near, we wel­come ENN as a new cus­tomer, ” Chevron Aus­tralia manag­ing direc­tor Roy Krzy­wosin­ski said.

“This deal shows the com­pet­i­tive­ness of LNG sup­ply from Chevron’s Aus­tralian pro­jects.”

The deal fol­lows a re­cently an­nounced non-bind­ing HoA with China Hua­dian Green En­ergy Co. ENN En­ergy is one of the big­gest nat­u­ral gas dis­tri­bu­tion com­pa­nies in China.

Chevron’s $US54 bil­lion Gor­gon project on Bar­row Is­land is near­ing com­ple­tion.

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