Chevron, Tohoku Electric Ink LNG Supply Deal

Chevron Corp has signed a preliminary agreement to sell Japan's Tohoku Electric one million tonnes of liquefied natural gas per year for 20 years, Reuters reported.

The gas will come from its Wheatstone plant in Australia, Roy Krzywosinski, Chevron Austalia's managing director told reporters in Adelaide, adding that with this sale more than 80 percent of the gas from Wheatsone had been sold.

Chevron is developing the Wheatstone Project as an LNG and domestic gas operation near Onslow, in the Pilbara region of Western Australia.

The Wheatstone Project includes a processing platform in 240 feet of water, 225 km from the coast of Western Australia. An underwater pipeline will transport gas and liquids from the platform to the onshore processing facility at Ashburton North. Initial capacity is expected to be 8.9 million tons per year of LNG.