Chevron ships first LNG cargo from Gorgon Project

Asia Excellence loads first cargo to be shipped from Gorgon Project Asia Excellence loads first cargo to be shipped from Gorgon Project

MARCH 21, 2016 — Chevron Corporation (NYSE: CVX) today announced that its first shipment of liquefied natural gas (LNG) from the Gorgon Project has departed Barrow Island off the northwest coast of Western Australia. The cargo will be delivered to one of Chevron's foundation buyers, Chubu Electric Power, for delivery to Japan.

"Departure of the first cargo from the Gorgon Project is a key milestone in our commitment to be a reliable LNG provider for customers across the Asia-Pacific region," said Mike Wirth, executive vice president, Chevron Midstream and Development. "This is also important for our investors as we begin to generate revenue from a project we expect will operate for decades to come."

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

More than 80 percent of Chevron's Australian subsidiaries' equity LNG from the Gorgon and Wheatstone projects is covered by sales and purchase agreements and heads of agreements with customers in the Asia-Pacific region.

The LNG cargo will be delivered by the Asia Excellence, one of Chevron's new state-of-the-art LNG carriers. To support Chevron's growing position as a leading LNG supplier, Chevron Shipping Company is in the final stages of its largest shipbuilding and fleet modernization program in recent history, which includes the addition of six new LNG carriers from shipbuilder Samusng Heavy Industries in South Korea to its operated fleet.

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 miles (130 km) and 136 miles (220 km) off the northwest coast of Western Australia. It includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

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