Government of Western Australia Official Site


Kyushu Electric Power Co. signs Wheatstone deal with Apache and partners

The Australian subsidiary of Apache Corporation and its partners have signed long-term sales and purchase agreements with Kyushu Electric Power Co, Inc. for liquefied natural gas (LNG) from the Chevron-operated Wheatstone Project in Western Australia.

The Wheatstone partners agreed to supply Kyushu Electric with 700,000 metric tons per annum (mtpa) of LNG for up to 20 years. Through its 13-percent share in the Wheatstone Project, Apache will supply 0.1 mtpa from natural gas produced at the Julimar and Brunello fields. Kyushu will also buy a 1.83% stake in the gas fields feeding the Wheatstone project from Chevron and 1.46% in the LNG processing plant to be developed near the town of Onslow.

The deal came just a week after Apache said it received environmental approval from the Australian government for the development of the Julimar and Brunello natural gas fields, which will supply natural gas to the Wheatstone project.

The LNG sales agreements are binding subject to a positive final investment decision (FID) by the Wheatstone partners to proceed with the project. Front-end engineering and design of the Wheatstone Project’s first phase – consisting of two processing trains with a combined capacity of approximately 8.9 mtpa and a domestic gas plant – is complete, and the FID is expected during the second half of 2011.

“Apache is pleased to announce this agreement with Kyushu Electric; it is an important milestone for the Wheatstone Project and Apache’s plans to develop the Julimar and Brunello fields,” said Janine McArdle, Apache’s senior vice president.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina.