The Australian reports Korea Gas Corp has signed up for delivery of LNG from Chevron's Wheatstone project - Korea Gas signs up for Wheatstone LNG
KOREA Gas Corp has signed a preliminary agreement for delivery of LNG for up to 20 years from the Wheatstone project offshore Australia.
The agreement between Chevron and its partners and the state-run KOGAS is the latest in a string of deals to supply LNG between major oil companies and customers in East Asia.
The agreement also is a significant step for Chevron in adding credibility to Wheatstone, which faces stiff competition from other projects to secure customers.
It also helps Chevron to keep on track the development of the project, about which the company confirmed there will be a final investment decision in 2011.
Oppenheimer & Co analyst Fadel Gheit said: "There is plenty of LNG coming out of Australia and obviously securing long-term supply contracts is very critical for the development of any major project."