(Source: Business Wire)
Australian subsidiaries of Chevron Corporation (NYSE:CVX) and Korea Gas
Corporation (KOGAS) have signed a Heads of Agreement (HOA) in Perth last
night for the delivery of 1.5 million tonnes per annum (MTPA) of
Liquefied Natural Gas (LNG) for 15 years from the Gorgon project.
As part of the arrangement, Chevron and KOGAS have an option to extend
the agreement for a further five years. The parties are also discussing
LNG sales and an equity purchase from Chevron's Wheatstone project, to
be located in the western Pilbara region about 200 kilometres south of
the Wheatstone natural gas field.
Chevron Australia Managing Director Roy Krzywosinski, welcomed KOGAS as
a major customer of the Gorgon project, which received approval to start
construction earlier this week.
"This agreement represents the largest, long-term LNG sale between
Australia and Korea, and the first long term sale between KOGAS and an
Australian supplier. Korea is the world's second largest importer of LNG
and is a desirable market for LNG," said Krzywosinski.
"The sale of Gorgon LNG to Korea reflects Australia's growing reputation
as an LNG supplier. We expect to build on this relationship with KOGAS
as we move forward with our Australian LNG projects."
This announcement follows Sale and Purchase Agreements with GS Caltex,
Osaka Gas and Tokyo Gas, which were announced on 10 September 2009.
Chevron expects additional agreements for the sale of Gorgon LNG to be
executed in the coming months.
KOGAS was incorporated by the Korean Government in 1983 and has grown to
become the largest single LNG buyer in the world. It operates three LNG
import terminals as well as a gas pipeline network spanning more than
2700 kilometres across Korea.
The Gorgon project is operated by Chevron Australia Pty Ltd (50 percent)
in joint venture with the Australian subsidiaries of ExxonMobil (25
percent) and Shell (25 percent). The project's scope includes a
three-train, 15 MTPA LNG facility; a carbon dioxide injection project
expected to be the world's largest; and a domestic gas plant.
Chevron is one of the world's leading integrated energy companies and
through its Australian subsidiaries, has been present in Australia for
more than 50 years. With the ingenuity and commitment of more than 1,400
people, Chevron Australia leads the development of the Gorgon and
Wheatstone natural gas projects; manages its equal one-sixth interest in
the North West Shelf Venture; and operates Australia's largest onshore
oilfield on Barrow Island and the Thevenard Island oilfields.
