$54 Billion Chevron LNG Deal with Tokyo Electric

By Admin
Japan is seeking alternate means by which to generate the electricity lost following the shutdown of the countrys nuclear power plants. The short-term...

Japan is seeking alternate means by which to generate the electricity lost following the shutdown of the country’s nuclear power plants.  The short-term fix is coming in the form of liquefied natural gas (LNG), which Tokyo Electric Power Company (Tepco) has agreed to purchase from Chevron’s Wheatstone project.

Tepco will buy approximately 3.1 million tonnes of Chevron’s LNG reserves annually according to the deal signed Wednesday.  The agreement is expected to last up to 20 years and will equate to roughly $54 billion in LNG purchases by Tepco.  The agreement will account for more than a third of Wheatstone’s 8.9 million-tonnes-a-year initial output.

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

Shell 'Prelude' Floating Liquefied Natural Gas Terminal

ConocoPhillips to Split into Two Companies

Read the latest issue of Energy Digital!

The Wheatstone project is an Australia-based LNG processing facility sourcing its natural gas reserves from the Wheatstone, Iago, Julimar and Brunello offshore gas fields.  Tepco is expected to buy a stake in the project that is a joint venture between Chevron, Apache Corp., and a subsidiary of Kuwait Foreign Petroleum Exploration Company.

With LNG taking off in Australia, the decision by Japan to pursue natural gas as an immediate replacement for nuclear is a logical choice.  While the country will be looking to implement more renewable energy generation like solar and wind, renewable capacity will be slower to develop.  LNG can fill the gap much quicker.

Share

Featured Articles

Alfa Laval to supply world’s largest green hydrogen plant

The facility is being built in NEOM, the US$500bn futuristic city being developed in Saudi Arabia

COP27 agrees to climate compensation fund

The deal is said to be a historic first in acknowledging the vast inequities of the climate crisis

North America's natural gas can help mitigate energy crisis

In the effort towards decarbonisation, North America could be a key player in providing affordable natural gas, addressing energy security issues

COP27: Egypt and Norway to build 100MW green hydrogen plant

Renewable Energy

Renewable energy company Masdar opens office in Saudi Arabia

Renewable Energy

Ørsted closes US$140m transaction with ECP for US portfolio

Renewable Energy