ChevronTexaco signs MOU to bring Australian LNG to U.S.

ChevronTexaco Corp. said Aug. 4 that an affiliate has signed a memorandum of understanding with the Gorgon joint venture in Australia to supply liquefied natural gas to the West Coast.

Under terms of the MOU, the company said, an affiliate will enter negotiations with the Gorgon joint venture which could lead to the supply of at least 2 million tonnes of LNG annually over a 20-year period, beginning in 2008.

The Gorgon gas field, offshore Western Australia, has certified proven hydrocarbon reserves of 12.9 trillion cubic feet, with total natural gas resources in the greater Gorgon area exceeding 40 tcf, the company said.

ChevronTexaco has a 4/7th interest in the joint venture and is operator. Partners include Shell, with 2/7th interest, and ExxonMobil with 1/7th interest.

ChevronTexaco said it is currently seeking approvals to permit the construction and operation of an LNG terminal and regasification facility offshore Baja California capable of receiving Gorgon LNG. "We believe the world-class Gorgon gas field and the significant natural gas resources in the Greater Gorgon area are ideally situated to meet growing demand in the Asia Pacific Basin," said John Gass, president of ChevronTexaco Global Gas.

Separately, ChevronTexaco is engaged in permitting an LNG import terminal facility offshore Louisiana in the Gulf of Mexico, and is evaluating additional sites suitable for the importation of LNG to North America.