Chevron inks 5-year LNG supply deal with Japan’s Hokkaido Gas

A unit of US energy giant Chevron has signed a binding five-year deal to supply LNG to Japan’s Hokkaido Gas.

Under the deal, the firm’s unit Chevron U.S.A. Inc. via its Singapore branch will supply the Japanese firm with about a half million tons of LNG over a period of five years starting in April 2022.

In addition, Chevron said in a statement it would supply LNG from its global portfolio to Hokkaido Gas. The latter is an integrated energy company located in Japan’s Sapporo, which provides city gas, electricity but also other energy services in Hokkaido region.

The deal marks the first direct contract between Hokkaido Gas and an LNG producer. It is also Chevron’s first deal with a Japan firm since the final Wheatstone foundation deals in 2013.

John Kuehn, president of Chevron Global Gas, a division of Chevron U.S.A., said the supply deal with new partner Hokkaido Gas would bring Chevron LNG directly to Hokkaido, a “key growth area.”

He added the new deal broadens Chevron’s customer base in Japan, “a market that is foundational to our LNG business.”

Hokkaido Gas operates the Ishikari LNG terminal located on Japan’s second-largest island.

To remind, the city gas supplier recently received its first carbon-neutral LNG cargo at the terminal from compatriot trader Mitsui & Co.

Most Popular

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

More News Like This

Japan’s Hokkaido Gas in LNG trucking milestone

Japanese utility Hokkaido Gas has loaded the 100,000th truck with liquefied natural gas at its Ishikari import terminal since the facility launched operations in 2012.

Seatrium upgrades Chevron’s LNG tanker

Singapore’s Seatrium has completed upgrading Chevron’s last LNG carrier as part of a project aimed at slashing emissions.

Chevron, China’s ENN seal second LNG SPA

US energy giant Chevron has signed a second LNG sales and purchase agreement with Chinese independent gas distributor ENN.

Energy Transfer, Chevron expand Lake Charles LNG deal

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a new deal with energy giant Chevron for additional LNG volumes.