Chevron Australia Signs LNG Sales Deal With SK LNG Trading

Chevron Corporation on Tuesday announced its Australian subsidiaries have signed LNG sales agreement with SK LNG Trading Pte Ltd (SK).

Under the deal, 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.

 "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.

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).

"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 Gorgon project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built on Barrow Island include 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.