Chevron inks Wheatstone supply deal

Chevron has signed binding long-term sales and purchase agreements with Japanese utility Tohoku Electric Power Company for gas supplied from the $29 billion Wheatstone LNG project.

Chevron subsidiaries will supply Tohoku with 0.9 million tonnes per annum of LNG for up to 20 years under the deal.

Chevron Australia managing director Roy Krzywosinski said the agreement meant that 85 per cent of Chevron's equity LNG from Wheatstone was now committed to customers in Asia on a long-term basis.

"These agreements, combined with our ongoing exploration success, demonstrate that our Wheatstone and Gorgon projects in Australia are well-placed to meet the growing demand for natural gas in the Asia-Pacific region," Mr Krzywosinski said.

The Wheatstone project consists of two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant.

First production from Wheatstone is targeted for 2016.