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Chevron Corporation
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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