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.