Gorgon LNG project signs LNG supply deal with SK Group

The Chevron Australia-led Gorgon LNG project offshore Western Australia has signed a binding sales and purchase agreement to supply 4.15 million tonnes/year of LNG to SK Group’s SK LNG Trading Pte. Ltd. of South Korea for 5 years starting in 2017.

The agreement covers 27% of the project’s targeted nameplate capacity of 15.6 million tpy. Chevron says that in excess of 75% of its equity LNG from Gorgon has now been committed to customers in Asia.

The Gorgon project combines the development of Gorgon field and nearby Jansz-Io field. The three-train project on Barrow Island is scheduled to come on stream in mid-2015.

Interest holders are Chevron 47.3%, ExxonMobil Corp. 25%, Royal Dutch Shell PLC 25%, and Osaka Gas 1.25%, Tokyo Gas 1%, and Chubu Electric Power 0.417%.