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

Gastrade: Alexandroupolis FSRU remains offline due to technical issue

"For the moment, regasification services have been suspended due to a technical issue, for which we will provide further...

CMA CGM inks LoI for LNG-powered containerships

CMA CGM and CSSC's Jiangnan Shipyard recently signed the LoI, sources told LNG Prime on Wednesday. According to the sources,...

PetroVietnam Gas expects to award Thi Vai LNG expansion contract this year

This was revealed during a meeting between officials from PetroVietnam and PetroVietnam Gas on February 3, according to a...

More News Like This

Japan’s Hokkaido Gas eyes new LNG terminal

Hokkaido Gas said on Tuesday it has decided to study the development of a "carbon-neutral" hub at the Tomakomai...

Energy Transfer, Chevron ink long-term Lake Charles LNG deal

Energy Transfer LNG, has entered into a 20-year LNG sale and purchase agreement (SPA) with Chevron U.S.A., according to...

Chevron and Woodside in Australian LNG asset swap deal

The two firms announced the deal in separate statements on Thursday. Under the proposed transaction, Chevron Australia will transfer to...

Chevron-led JV secures GHG permit near Barrow Island

US energy giant Chevron and its partners Shell and ExxonMobil have been awarded the greenhouse gas (GHG) assessment permit...