The Prime Minister
Minister for Resources and Energy
Minister for Trade
The Prime Minister announced in Parliament today that Chevron Australia has signed three binding LNG Sales Purchase Agreements for the delivery of Gorgon gas into the Japanese and South Korean markets.
The first of these agreements is with Osaka Gas for the supply of 1.375 million tonnes per annum. The second agreement is with Tokyo Gas for the supply of 1.1 million tonnes per annum.
These contracts with Japanese customers could deliver up to $70 billion in exports over the next 25 years.
Japan has been with us from the very beginning of the Australian LNG industry 25 years ago as a foundation investor and customer in the North West Shelf Project.
More than 2,250 cargoes of Australian LNG have been delivered to Japan since 1989 and the agreements signed today mean there will be many more to come.
The final agreement is with GS Caltex in South Korea for the supply of 0.5 million tonnes per annum for a period of up to 20 years.
South Korea is an important emerging market for Australian LNG with many more opportunities in the pipeline.
Throughout the Asia Pacific, Australian LNG will be increasingly important as a reliable, secure, clean energy source to power continued economic growth.
With government approvals now in place and a number of Gorgon LNG contracts executed over the last month, the Gorgon LNG project is set to soon become Australia's biggest single infrastructure investment.
It has been a great four weeks for Australia's LNG sector, with the announcement of our first long-term contract to supply India - worth $25 billion; our biggest ever single trade deal - a $50 billion contract with PetroChina; and today's announcement of further deals of even greater magnitude with Japan and South Korea.
These are massive contracts that will generate economic growth, jobs and prosperity for the nation for decades to come.
The Gorgon project will support jobs for up to 6,000 people during peak construction and goods and services purchased in Australia for the project are expected to be around $33 billion. Government revenue of about $40 billion is anticipated from the Gorgon project.