SYDNEY (Kyodo) Chubu Electric Power Co. has signed a long-term sale and purchase agreement with U.S. energy giant Chevron Corp. that will secure liquefied natural gas for the next 25 years, Chevron's Australian subsidiary announced Thursday.
The 43 billion Australian dollar ($38.7 billion) Gorgon Project will supply Chubu Electric with 1.44 million tons of LNG each year.
"Chubu Electric has been a strong supporter of Gorgon for many years and I am pleased to see this relationship culminate in this major, long-term LNG sales contract," Roy Krzywosinski, Chevron Australia managing director, said in a statement.
Operated by Chevron Australia, which has a 47.75 percent stake in the project, the joint venture also involves ExxonMobil (25 percent stake), Shell (25 percent), Osaka Gas Co. (1.25 percent) and Tokyo Gas Co. (1 percent).
Chubu Electric announced in November that it will acquire 0.417 percent from Chevron's stake in the Gorgon Project.