Chevron Australia has welcomed the signing of gas sales agreements that will help bolster Western Australia’s future energy security.
Under the agreements, gas from the Chevron operated Gorgon Project will be purchased through long term contracts by Western Australia’s largest energy retailer, Synergy and the State’s leading energy generator, Verve Energy.
Verve and Synergy have both entered into contracts for a combined 125 terajoules per day for 20 years term starting in 2015.
Roy Krzywosinski, managing director Chevron Australia said, “ We are pleased to have finalised two significant long-term domestic gas sales contracts for the Gorgon Project and we welcome Synergy and Verve as valued customers .”
“ Domestic gas is an important energy source for Western Australia and these contracts mean more gas and competition for the local market .”
Krzywosinski added, “ It demonstrates the market is working. We have been actively marketing domestic gas from Gorgon and we will continue to do so. ”
The Gorgon Project is due to deliver domestic gas to the market in 2015.
Chevron is the operator of the Gorgon Project and holds a 47.3 percent interest. Joint venture participants include ExxonMobil (25 percent interest), Shell (25 percent interest), Osaka Gas (1.25 percent), Tokyo Gas (1 percent), and Chubu Electric (0.417 percent).
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LNG World News Staff, November 30, 2011; Image: Chevron