Chevron Signs Gorgon LNG Deal With China's ENN

Chevron Corporation on Monday announced that its Australian subsidiaries have signed a non-binding Heads of Agreement (HoA) with ENN LNG Trading Company Limited (ENN) for the delivery of 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, Chevron said.

“This is one more step in the development of our Australian gas business and our global LNG portfolio,” said Mike Wirth, executive vice president, Chevron Midstream and Development. “It also 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., Ltd. 

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).