Chevron has struck a deal to sell natural gas from its West Australian Gorgon project to South Korean giant SK Group.
The US energy group will sell 4.15 million tonnes of liquefied natural gas to industrial conglomerate SK over five years from 2017.
Chevron did not reveal the deal’s value, but the plunge in the oil price to six year lows has driven down the price of gas, too.
The deal offers security for Chevron, which previously committed to selling a sizeable 35 per cent of its volume share of Gorgon into spot markets rather than long-term customers.
The $US54 billion 15.6 million tonne a year Gorgon project is Chevron’s largest single resource project and is due to be operating by the end of calendar 2015.