Chevron, JX Nippon Sign Gorgon SPA

Chevron, JX Nippon Sign Gorgon SPA

Tuesday, May 10, 2011
Chevron Corp.

Chevron Corp. on Tuesday announced that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA) with JX Nippon Oil and Energy Corporation for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon Project.

Under the binding agreement, JX Nippon Oil and Energy will receive 0.3 million tons per annum (MTPA) of LNG from the Gorgon Project for 15 years.

John Gass, president, Chevron Gas and Midstream, welcomed JX Nippon Oil and Energy Corporation as a customer of the Gorgon Project. "We are pleased to have JX Nippon Oil and Energy as a customer of the Gorgon Project. Chevron has a long-standing relationship with JX Nippon Oil and Energy, and we look forward to continuing to grow our relationship."

Roy Krzywosinski, managing director, Chevron Australia, said, "The agreement is another step towards commercializing our equity natural gas in Australia, further demonstrating Chevron's leading ability to meet long-term demand growth in Asia-Pacific. Construction of the Gorgon Project is progressing well with first gas expected in 2014."

Chevron is the operator of the Gorgon Project and holds an approximate 47 percent interest.

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JX Nippon, Qatar Sign Gas Exploration Deal - Reports

JX Nippon, Qatar Sign Gas Exploration Deal - Reports

Monday, May 09, 2011
Deutsche Presse-Agentur (dpa)

Japan's JX Nippon Oil & Gas Exploration Corp. and state-operated Qatar Petroleum signed a 100-million-dollar exploration and production sharing agreement for a natural gas field off the emirate, news reports said Monday.

JX Nippon, a unit of JX Holdings Inc, reached the 30-year agreement Sunday with Qatar for production sharing at Block A, a 6,173-square-kilometer area near North Field, the world's biggest gas field, Jiji Press reported.

The field is estimated to have significantly large reserves, an unnamed official of Japan's Agency for Natural Resources and Energy was quoted by Jiji as saying. Production is expected to start around 2020 after five years of exploration and test drilling.

Industry Minister Banri Kaieda said in a statement that the latest deal would help Japan bolster its bilateral relations with Qatar and secure energy needed for its recovery from the March earthquake disaster, Jiji reported.

Demand for liquefied natural gas has risen in Japan following the March 11 earthquake and tsunami, which forced providers to take a number of nuclear power stations offline. The disaster crippled the Fukushima Daiichi nuclear plant and it has leaked radiation into the air and sea ever since.

Amid growing public concern about another nuclear accident and demands to review the country's nuclear energy policy, Prime Minister Naoto Kan urged utility provider Chubu Electric Power Co Friday to shut down all reactors at its Hamaoka nuclear station located near a geological fault line.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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