Oil major Chevron has signed up Alinta Energy to buy gas from the company’s Wheatstone project.
The deal will see the firm sell 20 petajoules a year of gas from the project in Western Australia starting from 2020.
The move secures a customer for more than a quarter of the domestic gas output from Wheatstone.
Chevron Australia managing director Roy Krzywosinksi said: “This agreement is an important step in Chevron’s rapidly expanding domestic gas business in Western Australia.”
The $29billion Wheatstone project is due to start producing liquefied natural gas (LNG) for export next year and start supplying the Western Australia in 2018.
Chevron has a 64% stake in the project, with Kuwait Foreign Petroleum Exploration, Woodside Petroleum and Japan’s Kyushu Electric Power Co and Tokyo Electric Power Co holding the remaining shares.
The company currently supplies about 10% of the Western Australian market with gas from its shares of the competing North West Shelf project.