CHEVRON announced its Australian subsidiaries have signed a sales and purchase agreement (SPA) for SK LNG Trading.

The agreement outlines plans for 4.15 million tonnes of LNG to be sold to SK LNG Trading over a five year period starting in 2017.

Over 75 per cent of Chevron’s equity LNG from Gorgon will be committed to consumers in Asia throughout the duration of the SPA.

Chevron gas and midstream president Pierre Breber said the agreement was an important step in the commercialisation of the company’s natural gas holdings in Australia.

“SK joins our existing strong LNG customer base and demonstrates the Chevron-led Gorgon and Wheatstone projects are well placed to meet the growing demand for natural gas in the Asia Pacific region,” Mr Breber said.