Chevron and SK LNG Trading Sign Gorgon LNG Supply Agreement
January 20 2015 - 6:00PM
Business Wire
Five-year agreement marks further
commercialization of equity natural gas in Australia
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 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.
“This agreement is an important step in the commercialization 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).
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 (LNG) 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. The project also includes
a domestic gas plant.
Chevron is one of the world's leading integrated energy
companies, with subsidiaries that conduct business worldwide. The
company is involved in virtually every facet of the energy
industry. Chevron explores for, produces and transports crude oil
and natural gas; refines, markets and distributes transportation
fuels and lubricants; manufactures and sells petrochemical
products; generates power and produces geothermal energy; and
develops the energy resources of the future, including biofuels.
Chevron is based in San Ramon, Calif. More information about
Chevron is available at www.chevron.com.
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Chevron CorporationJustin Higgs, 925-842-5297
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