Chevron to supply 4.15 million tonnes of LNG to South Korea
Chevron Corporation (NYSE: CVX) today announced its Australian subsidiaries have signed a binding Sales and Purchase Agreement (SPA) with SK LNG Trading Pte Ltd (SK). Under the SPA, SK LNG Trading, which is part of a leading industrial conglomerate in South Korea, will receive 4.15 million tonnes of LNG over a five year period starting in 2017.
During the time of this agreement, over 75 percent of Chevron's equity LNG from Gorgon will be committed to customers in Asia.
"This agreement is an important step in the commercialisation of Chevron's significant natural gas holdings in Australia," said Pierre Breber, president, Chevron Gas and Midstream. "As Chevron continues to grow into one of the world’s largest LNG suppliers, this SPA represents further progress and diversification of our sales portfolio."
"We are pleased with the opportunity to supply LNG to SK and look forward to building lasting relationships with our customers in the region as the Gorgon and Wheatstone projects move into operations," said Roy Krzywosinski, managing director, Chevron Australia. "SK joins our existing strong LNG customer base and demonstrates the Chevron-led Gorgon and Wheatstone projects are well-placed to meet the growing demand for natural gas in the Asia-Pacific region."
The Chevron-operated Gorgon Project is a joint venture of 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).
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of more than 4,000 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; and operates Australia’s largest onshore oilfield on Barrow Island. Chevron is also a significant investor in exploration offshore Australia and onshore central Australia. Chevron's Perth-based Global Technology Centre provides technology support and solutions to the company's operations in Australia and around the world.