Chevron, SK LNG Trading sign Gorgon LNG supply agreement

Chevron Corporation’s Australian subsidiaries have signed a Sales and Purchase Agreement (SPA) with SK LNG Trading Pte Ltd (SK), for the supply of LNG from the Gorgon project in Australia.

Under the agreement, SK LNG Trading will receive 4.15 million t 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 sold to customers in Asia.

Comments

Commenting on the agreement, Pierre Breber, President of Chevron Gas and Midstream said: "This agreement is an important step in the commercialisation of Chevron's significant natural gas holdings in Australia. 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."

Roy Krzywosinski, Managing Director, Chevron Australia added: "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. 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."

Gorgon LNG

The Gorgon project is a joint venture between the Australian subsidiaries of Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power. The project combines the development of the 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 million metric tpy of LNG, a carbon dioxide injection project and a domestic gas plant.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquefaction/21012015/chevron-signs-gorgon-lng-supply-contract-82/