Chevron and SK LNG Trading Sign Gorgon LNG Supply Agreement

Chevron Corporation (NYSE: CVX) today announced its Australian subsidiarieshave signed a binding Sales and Purchase Agreement (SPA) with SK LNG TradingPte Ltd (SK). Under the SPA, SK LNG Trading, which is part of a leadingindustrial conglomerate in South Korea, will receive 4.15 million tons of LNGover a five-year period starting in 2017.During the time of this agreement, over 75 percent of Chevron's equity LNGfrom Gorgon will be committed to customers in Asia.“This agreement is an important step in the commercialization of Chevron'ssignificant natural gas holdings in Australia,” said Pierre Breber, president,Chevron Gas and Midstream. “As Chevron continues to grow into one of theworld's largest LNG suppliers, this SPA represents further progress anddiversification of our sales portfolio.”“We are pleased with the opportunity to supply LNG to SK and look forward tobuilding lasting relationships with our customers in the region as the Gorgonand Wheatstone projects move into operations,” said Roy Krzywosinski, managingdirector, Chevron Australia. “SK joins our existing strong LNG customer baseand demonstrates the Chevron-led Gorgon and Wheatstone projects arewell-placed to meet the growing demand for natural gas in the Asia-Pacificregion.”The Chevron-operated Gorgon Project is a joint venture of the Australiansubsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu ElectricPower (0.417 percent).The Gorgon Project combines the development of the Gorgon Field and the nearbyJansz-Io Field. Facilities being built on Barrow Island include a liquefiednatural gas (LNG) facility with three processing units capable of producing15.6 million metric tons of LNG per year, a carbon dioxide injection projectand a domestic gas plant.Chevron is also developing the Wheatstone Project as an LNG and domestic gasoperation near Onslow, in the Pilbara region of Western Australia. Theproject's initial capacity is expected to be 8.9 million metric tons per yearof LNG. The project also includes a domestic gas plant.Chevron is one of the world's leading integrated energy companies, withsubsidiaries that conduct business worldwide. The company is involved invirtually every facet of the energy industry. Chevron explores for, producesand transports crude oil and natural gas; refines, markets and distributestransportation fuels and lubricants; manufactures and sells petrochemicalproducts; generates power and produces geothermal energy; and develops theenergy resources of the future, including biofuels. Chevron is based in SanRamon, Calif. More information about Chevron is available at www.chevron.com