5-year deal for Chevron's Gorgon LNG

Chevron has announced a 5-year deal with South Korea's SK LNG Trading (SK).

Under the agreement, which commences in 2017, SK Group will receive 4.15 million tonnes of LNG, equating to over 75% of Chevron's equity LNG from Gorgon being committed to customers in Asia for that period.

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

"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.

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