The Minister for Resources, Martin Ferguson AM MP, welcomes the signing of a Heads of Agreement between the Korea Gas Corporation (KOGAS) and Chevron Australia for the delivery of 1.5 million tonnes per annum of Liquefied Natural Gas (LNG) from the Gorgon Project.
The agreement is for a period of 15 years and the parties have an option to extend the deal for a further five years.
Minister Ferguson said: "This is potentially the largest long-term LNG contract between Australia and Korea and we look forward to the successful conclusion of a Sales & Purchase Agreement.
"KOGAS is reportedly in the market for an additional 4mtpa of long-term LNG supply. I hope Australian LNG is in the front running to meet KOGAS's requirements."
South Korea is the world's second largest importer of LNG and KOGAS is the world's biggest single buyer of LNG.
Minister Ferguson said: "Chevron's agreement with KOGAS today is an important milestone in building a stronger LNG trading partnership between South Korea and Australia.The project firmly cements Australia's vital role as a clean energy supplier to the Asia Pacific, securing the sustainable economic future of our neighbours."
Being developed by Chevron, Shell, and Exxon Mobil, the Gorgon LNG project is Australia's biggest ever resources project.
In just the past five weeks, Gorgon developers have announced Australia's first long-term contract to supply India - worth $25 billion; our biggest ever single trade deal - a $50 billion contract with PetroChina; and $70 billion worth of supply contracts to Japan and South Korea.