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Australian $90 billion gas megadeal with Japan

Another one of the most significant trade deals for South East Asia we will see in our life times has been signed. Chevron has announced it will sell 4.1 million tonnes of LNG from its Wheatstone project off the cost of Western Australia to Japan's largest utility company, Electric Power Co, each year for up to 20 years.

Although the exact value of the deal has not been disclosed, industry experts extimate the deal to be a staggering AUD$90 Billion (US$83 Billion). This latest deal comes as big Asian countries scramble to lock up long-term supplies of the low-emissions fuel.

Chevron's deal tops the Australia's previous biggest export agreement, ExxonMobil's $50 billion contract to supply LNG to China from the massive Gorgon field, also in Western Australia. About $127 billion in Australian LNG projects are expected to start exports between 2012 and 2018.

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