Chevron signs five-year LNG supply agreement with South Korea

SAN RAMON, California -- Chevron's Australian subsidiaries have signed a binding sales and purchase agreement with SK LNG Trading, part of a leading industrial conglomerate in South Korea. SK will receive 4.15 MMt of LNG over a five-year period starting in 2017.

During the time of this agreement, over 75% 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."

The Chevron-operated Gorgon Project is a joint venture of the Australian subsidiaries of Chevron (47.3%), Exxon Mobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).

The Gorgon Project combines the development of Gorgon field and the nearby Jansz-Io field. Facilities being built on Barrow Island include an LNG facility with three processing units capable of producing 15.6 MMtpa, 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 MMtpa of LNG. The project also includes a domestic gas plant.