Chevron’s Australian subsidiaries have inked a sale and purchase agreement with Kyushu for the delivery of liquefied natural gas (LNG) from the Wheatstone Project in Western Australia.

Under the binding agreement, Chevron, together with Apache and Kufpec, will deliver up to 0.7 million tonnes per annum (MTPA) of LNG to Kyushu Electric for up to 20 years.

Kyushu Electric will also acquire 1.83 percent of Chevron’s equity share in the Wheatstone field licenses and a 1.46 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow. Including the equity participation volume, Kyushu Electric will take delivery of 0.8 MTPA of LNG from the Wheatstone Project.

Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company, said the company is working with all levels of the Australian government and anticipate timely project approvals, which will enable a final investment decision to be made.

“Wheatstone will be one of Australia’s largest resource projects and once it is approved will create jobs and substantial economic benefits for the country,” she said.

The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant.