|
Korea
Gas Corp. has agreed to buy 1.5 million tons of liquefied natural gas a
year from Chevron Corp. over 15 years in the largest long-term LNG deal
ever signed between Australia and South Korea, the vendor said
Wednesday.
The gas will come from the Gorgon gas field which Chevron and its joint
venture partners, ExxonMobil Corp. and Royal Dutch Shell, announced on
Monday will be developed off the northwest Australian coast.
Under a heads of agreement signed overnight on Tuesday, the South Korea
government-owned buyer, also known as KOGAS, has an option to extend
the 15-year agreement for a further five years, Chevron said in a
statement.
Chevron Australia managing director Roy Krzywosinksi said the 15-year
supply deal represents the largest long-term LNG sale ever signed
between Australia and South Korea.
While Chevron has not announced the price, Australian Broadcasting
Corp. radio reported the deal is estimated to be worth 30 billion
Australian dollars ($26 billion).
"The sale of Gorgon LNG to Korea reflects Australia's growing
reputation as an LNG supplier," Krzywosinksi said in the statement.
South Korea is the world's second largest importer of LNG after Japan.
Chevron, who operates and owns a half share of Gorgon, said it expects
to announce in coming months further sale agreements from the field
which is expected to start production in 2014.
Prime Minister Kevin Rudd described Gorgon as Australia's biggest-ever
resource development which would generate AU$300 billion in export
earnings.
The joint venture partners gave final investment approval to Gorgon's
development this week after signing sale contracts with South Korea,
China, India and Japan.
|
