HOUSTON, April 17, 2012 /PRNewswire/ -- Apache Corporation (NYSE,Nasdaq: APA) today announced that an Apache Australian subsidiary and its partners have agreed to sell liquefied natural gas (LNG) from the Chevron-operated Wheatstone Project in Western Australia to Chubu Electric Power Company Incorporated (Chubu).
The Wheatstone partners and Chubu signed a heads of agreement to supply 1 million metric tons per annum (MTpa) of LNG for up to 20 years. Through its 13-percent share in Wheatstone, Apache Julimar Pty Ltd, an Apache subsidiary, will supply 0.13 MTpa to Chubu, or approximately 19 million cubic feet of natural gas per day.
Wheatstone, one of Australia's largest resource projects, is under development at Ashburton North, 7 miles (12 kilometers) west of Onslow in Western Australia. The foundation phase of the project will include two LNG trains with a combined capacity of 8.9 MTpa and a domestic gas plant.
Apache Julimar Pty Ltd and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of Kuwait Foreign Petroleum Co., will supply gas produced from the Julimar and Brunello fields, large gas accumulations discovered in 2007. Apache has a 65-percent interest in the upstream Julimar Development Project and is the operator.
The heads of agreement is subject to completion of a binding LNG sales agreement. The Wheatstone partners earlier announced long-term agreements to sell LNG to Tokyo Electric Power and Kyushu Electric Power.
"Apache is pleased to announce this agreement with Chubu; it is an important milestone for the Wheatstone project and another indication of continued strong demand for LNG in Asia," said Janine McArdle, Apache's senior vice president of gas monetization.
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. From time to time, Apache posts announcements, updates and investor information, in addition to copies of all press releases, on its website, www.apachecorp.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These statements include, but are not limited to, statements about the development of LNG facilities, LNG marketing activities and future production and exploration prospects in Western Australia. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2011 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.
SOURCE Apache Corporation