Chevron’s Australian subsidiaries signed a binding sales and purchase agreement (SPA) with SK LNG Trading (SK), in which SK will receive 4.15 million-tonne of liquefied natural gas (LNG) over a five-year period starting in 2017.
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Gorgon LNG site. From Chevron. |
During the time of this agreement, over 75% of Chevron's equity LNG from Gorgon will be committed to customers in Asia.
The Gorgon project combines the development of the Gorgon field and the nearby Jansz-Io field. Facilities being built on Barrow Island include a LNG facility with three processing units capable of producing 15.6 million-tonne of LNG per year, a carbon dioxide injection project and a domestic gas plant.
"This agreement is an important step in the commercialization of Chevron's significant natural gas holdings in Australia," says 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," says 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%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).
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-tonne per year of LNG. The project also includes a domestic gas plant.
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