In another push for added liquefied natural gas (LNG) imports into North America, a ChevronTexaco (CVX) affiliate on Monday signed a memorandum of understanding (MOU) with Gorgon Joint Venture in Australia for up to two million tons annually of LNG supplies to West Coast markets. Based on the terms of the MOU, the affiliate will enter confidential negotiations with Gorgon Joint Venture, in which CVX will hold the majority interest and act as the operator.

The deal with Gorgon, which is tied to one of western Australia’s major offshore gas fields, could cover a 20-year period, beginning in 2008, the company said.

CVX is one of four U.S.-based companies with a proposal to build an LNG receiving terminal along the Pacific Coast of North Baja in Mexico. It is one of three still awaiting approval from the Mexican federal energy commission, from which action is expected in the near future, according to a Mexican federal energy official who spoke last week in Denver at a Federal Energy Regulatory Commission technical workshop on western energy infrastructure.

Separately, CVX is also seeking permitting for a second LNG import terminal offshore Louisiana in the Gulf of Mexico, and the company has said it is “evaluating additional sites suitable for importation of LNG to North America.” As one of the world’s major natural gas producers and marketers, ChevronTexaco produces about 4.4 Bcf/d in the U.S., Canada, Australia and 12 other countries.

John Gass, president of ChevronTexaco Global Gas, called the Greater Gorgon gas field “ideally situated to meet the growing demand in the Asia Pacific Basin,” adding that the Gorgon development is “a key element of our strategy to commercialize our equity resource base by targeting North American and Asian markets.

“Growing North American demand is widely projected to outstrip supply capabilities,” Gass said. “The Gorgon Joint Venture is well positioned to help satisfy natural gas demand in both the West Coast of the United States and Mexico.”

CVX characterizes the Gorgon gas field as certified to have proven hydrocarbon reserves of 12.9 Tcf, with total natural gas resources exceeding 40 Tcf in the greater Gorgon area. The Gorgon Joint Venture participants include CVX (4/7th interest and operator), Shell (2/7th interest) and Exxon Mobil (1/7th interest).

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