Chevron’s Australian subsidiaries have signed a non-binding Heads of Agreement (HoA) with ENN LNG Trading Company for the delivery of liquefied natural gas (LNG) to China from the Chevron-operated 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 (MTPA) of LNG over 10 years, with deliveries starting in 2018 or the first half of 2019.
According to Mike Wirth, executive vice president, Chevron Midstream and Development, the deal represents further progress with new LNG buyers in China who are “ poised to transform the LNG landscape in that country.”
This HOA follows the recently announced non-binding LNG supply HoA with China Huadian Green Energy Co.
ENN LNG is one of the subsidiaries of ENN Energy Holdings Ltd., which is one of the largest natural gas distribution companies in China. ENN’s Zhoushan LNG receiving terminal is being constructed and expected to be in operation by 2018.
The Gorgon Project is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).
The Gorgon Project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built 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.