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September 10, 2009
Osaka Gas signs agreements for LNG purchase and equity acquisition for Gorgon Project in Australia

Osaka Gas today has entered into agreements with Chevron’s Australian subsidiaries for purchase of LNG from the Gorgon Project in Australia and an equity interest in the project.  For the signing of the agreements, the companies were represented by Mr. Hiroshi Ozaki, President, for Osaka Gas, and by Mr. Roy Krzywosinski, Managing Director, for Chevron Australia Pty Ltd.  The agreements came following the Heads of Agreement agreed by the two companies in December 2005.

Natural gas produced at Gorgon and Jansz gas fields offshore Western Australia will be liquefied at Barrow Island. The liquefaction plant has the annual output capacity of 15 million metric tons. The participants in the Gorgon Project will receive LNG according to their interest and ship LNG to buyers in Japan and the Asia Pacific region.

According to the terms of the LNG Sale and Purchase Agreement, Osaka Gas will be delivered 1.375 million tons of LNG annually from Chevron for 25 years commencing in the second half of 2014. Osaka Gasí acquisition of 1.25% equity interest in the project enables the company to utilize 187.5 thousand tons of LNG per annum at its discretion.

Key terms of agreements

1. LNG purchase
 
a. Sellers:Chevron Australia Pty Ltd, Chevron (TAPL) Pty Ltd
b. Buyer:Osaka Gas Co., Ltd.
c. Duration:25 years commencing 2014
d. Contract volume:1.375 million tons/year
e. LNG delivery format:FOB (free on board)
2. Equity acquisition
 
a. Sellers:Chevron (TAPL) Pty Ltd
b. Buyer:Osaka Gas Gorgon Pty Ltd (wholly owned subsidiary of Osaka Gas Australia)
c. Equity:1.25% interest in the Gorgon Project

Gorgon Project
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