CHUBU ELECTRIC SIGNS GORGON GAS CONTRACT

Chubu Electric Power Co., the Nagoya-headquartered electric power company, became the third Japanese company to sign long-term contracts for gas supplies from the Gorgon liquefied natural gas development project off Western Australia’s northwest coast. Chevron, the lead partner in the project, agreed to supply Chubu Electric with 1.44 million metric tons per year of LNG for 25 years. Chubu Electric will also purchase a 0.417% equity stake in Gorgon from Chevron’s share of the project.

Chubu Electric supplies power to the central ‘Chubu’ region of Honshu, covering Aichi, Gifu Mie, Shizuoka and Nagano Prefectures. Chubu is the third Japanese company to sign contracts for gas supplies and to take a stake in the project. Tokyo Gas has agreed to buy 1% and Osaka Gas Co 1.25% respectively of the project from Chevron. Chevron originally held 50% of the project, while Shell and ExxonMobil each hold 25%. The A$43 billion (US$40 billion) Gorgon Project includes a three-train, 15 million-metric-tonnes per year LNG facility and a domestic gas plant, with production slated to start in 2014.

Chevron Australia Managing Director Roy Krzywosinski welcomed Chubu Electric as a foundation customer and participant in the Gorgon Project. “Chubu Electric has been a strong supporter of Gorgon for many years,” Mr Krzywosinski said. “I am pleased to see this relationship culminate in this major, long-term LNG sales contract. We also welcome Chubu Electric as an equity partner in Gorgon and look forward to their ongoing participation in the project.”