Chevron informed that its Australian units have signed a binding sales and purchase agreement with SK LNG Trading.
Under the SPA, SK LNG Trading, which is part of a leading industrial conglomerate in South Korea, will receive 4.15 million tons 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.
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).
The Gorgon project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built on Barrow Island include a liquefied natural gas facility with three processing units capable of producing 15.6 million metric tons of LNG per year, a carbon dioxide injection project and a domestic gas plant.
Chevron is also developing the Wheatstone project as an LNG and domestic gas operation near Onslow, in the Pilbara region of Western Australia. The project’s initial capacity is expected to be 8.9 million metric tons per year of LNG.
Press Release; Image: Chevron