Chevron Corp.’s Australian subsidiaries signed a binding sales and purchase agreement (SPA) with a division of South Korea’s SK Group, SK LNG Trading Pte Ltd. Under the SPA, SK LNG will receive 4.15 million tons of LNG over five years, beginning in 2017.

During the time of the agreement, more than 75% of Chevron’s equity LNG from Gorgon will be committed to customers in Asia.

The Gorgon Project is operated by Chevron and is a joint venture between the Australian subsidiaries of Chevron (47.3%), ExxonMobil Corp. (25%), Royal Dutch Shell Plc (25%), Osaka Gas Co. Ltd. (1.25%), Tokyo Gas Co. Ltd. (1%) and Chubu Electric Power Co. Inc. (0.417%).

The project combines the development of the Gorgon Field and the nearby Jansz-Io Field. Facilities being built on nearby Barrow Island include an LNG facility with three processing units with a production capacity of 15.6 million tons per year (mtpy) of LNG, a CO2 injection project and a domestic gas plant.

Chevron is also developing the Wheatstone LNG Project near Onslow, in the Pilbara region of western Australia. Its initial capacity is expected to be 8.9 mtpy of LNG. The project also includes a domestic gas plant.