U.S. Markets closed

Chevron signs long-term deal with Japan's Tohoku for Wheatstone LNG supply

PERTH, Oct 1 (Reuters) - U.S. oil company Chevron Corp said on Tuesday it has signed a liquefied natural gas supply deal with Japan's Tohoku Electric Power for supplies from its $29 billion Australian Wheatstone LNG project for up to 20 years.

Under the agreement, Chevron will supply Tohoku with 0.9 million tonnes of liquefied natural gas (LNG) per year.

With Tohoku's supply agreement, Chevron has now sold off 85 percent of the gas from its Wheatstone project to Asian customers through long-term contracts, Chevron said.

The Wheatstone project, located in northwest Australia, will have an 8.9 million tonne per year capacity and is expected to come online in 2016.