Gorgon Gas Deal Setting Export Records

The Deputy Prime Minister and Minister for Trade, Mark Vaile, has welcomed today's announcement of another major LNG deal by Chevron Australia with a Japanese electricity utility company.

"The deal to supply 1.5 million tonnes per annum (mtpa) to Osaka Gas, worth about $10 billion, follows on from agreements since 27 October for the Gorgon Project to sell 2.7mtpa to Tokyo Gas and Chubu Electric," Mr Vaile said.

"In combination the announcements by Chevron in the past six weeks are now larger than the record $25 billion China deal announced by the North West Shelf joint venture in 2002.

"This demonstrates the strength of the Australian LNG industry. Australia is becoming a supplier of choice for some of the world's best gas customers.

"With this level of international interest, the LNG industry in Australia has a very bright future," Mr Vaile said.

The Heads of Agreement between Chevron Australia and Osaka Gas is to supply 1.5 mtpa over 25 years, starting in 2011. Osaka Gas and Chevron Australia are also discussing purchase of an equity stake in the Gorgon Project by Osaka Gas.

"I very much welcome the addition of Osaka Gas as a foundation customer for Gorgon," Mr Vaile said.

"This latest deal is a major step forward for the Gorgon Project and means that Chevron has now secured buyers in Japan for nearly all its share of the Gorgon Project."

Mr Vaile wished the Gorgon partners well in reaching another milestone in the commercialisation of Gorgon Gas and looked forward to the development of the project.

Mr Vaile said Japan has been Australia's largest export market for almost 40 years, with $28 billion worth of Australian goods and services exported to Japan in 2004-05.

"The evidence just continues to grow that a Free Trade Agreement between Australia and Japan would deliver enormous benefits."

Contacts: Richard Forbes 02 6277 7420