SAN RAMON, California – Chevron Corp.’s Australian subsidiaries have signed a non-binding heads of agreement with ENN LNG Trading Co. Ltd. for LNG delivery to China from the Gorgon natural gas project in Australia.
When the deal is finalized, ENN is expected to receive up to 0.5 million metric tons per annum of LNG over 10 years. Deliveries are expected to start in 2018 or the first half of 2019.
ENN’s Zhoushan LNG receiving terminal is under construction and is expected to be in operation by 2018.
The Gorgon Project is a joint venture of the Australian subsidiaries of Chevron (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%), and Chubu Electric Power (0.417%).
The Gorgon Project combines the development of the Gorgon field and the nearby Jansz-Io field. Facilities under construction on Barrow Island include an LNG facility with three processing units capable of producing 15.6 MTPA of LNG, a carbon dioxide injection project, and a domestic gas plant.
Mike Wirth, executive vice president, Chevron Midstream and Development, said: “This is one more step in the development of our Australian gas business and our global LNG portfolio. It also represents further progress with new LNG buyers in China who are poised to transform the LNG landscape in that country.”