Chevron signs two SPAs

Chevron has signed a sales and purchase agreement (SPA) with GS Caltex Corporation for the delivery of LNG to South Korea from Chevron’s global supply portfolio, beginning in October 2019. The companies had an existing LNG SPA executed in 2009.

Chevron owns 50% of GS Caltex and is the operator (50%) of the three-train, 15mn t/y Gorgon LNG project in Australia, partnered by ExxonMobil (25%) and Shell (25%).

Chevron has also signed an SPA with Petrobras to acquire all the outstanding shares and equity interests of Pasadena Refining System, which includes a 110,000 b/d capacity refinery in Texas, the US, and PRSI Trading for $350mn, excluding working capital. ‘This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, to supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realise synergies through coordination with our refinery in Pascagoula,’ says Pierre Breber, Executive Vice President of Chevron Downstream & Chemicals. The acquisition is subject to customary closing conditions, including regulatory approvals.