U.S. oil major Chevron (NYSE: CVX) last month signed a liquefied natural gas (LNG)
supply and purchase agreement with Hokkaido Gas for a half million tons of LNG from its global portfolio spread over a period of five years, starting from April 2022.
Chevron said its new partnership will broaden its customer base in Japan, a market that is foundational to its overall LNG business.
The new deal typifies how LNG markets in the Asia-Pacific region, home to around two-thirds of global LNG demand, are still undergoing systematic changes amid a prolonged supply overhang of the fuel.
Buyers in the region have gained considerable contractual leverage over producers in the last few years. Instead of inking long-term 15- and even 20-year restrictive supply deals, more buyers are signing shorter-term deals, while also buying more cargoes on the spot market. This trend will continue as increasing numbers of long-term LNG contracts begin to expire, especially in Japan, by mid-decade.
Chevron, Hokkaido Gas Ink LNG Supply Deal aogdigital.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from aogdigital.com Daily Mail and Mail on Sunday newspapers.
Chevron Inks Another Deal to Supply LNG in Asia
Chevron Corp. said Wednesday that it has signed a binding sales and purchase agreement (SPA) to supply liquefied natural gas (LNG) to a utility in Hokkaido, Japan, beginning in 2022.
Under the deal, affiliate Chevron U.S.A. Inc. would provide 500,000 tons of LNG from 2022 to 2026 to Hokkaido Gas Co. Ltd. With harsh winters, Hokkaido is the second largest, northernmost and least developed of Japan’s four main islands.
John Kuehn, president of Chevron Global Gas, called the prefecture a “key growth area” for the company. He added that the deal “broadens our customer base in Japan, a market that is foundational to our LNG business.”
Chevron U.S.A. Partners With Hokkaido Gas To Bring Chevron LNG Directly To Hokkaido Area
SAN RAMON (dpa-AFX) - Chevron Corporation (CVX) said its unit Chevron U.S.A. Inc. has signed a binding Sale and Purchase Agreement with Hokkaido Gas Co. for the delivery of liquefied natural gas from Chevron s global LNG portfolio to the Hokkaido area. Chevron U.S.A. will supply Hokkaido Gas with about a half million tons of LNG over a period of five years starting April 2022.
Hokkaido Gas is an integrated energy company located in Sapporo, Japan which provides city gas, electricity and other high value-added energy services in Hokkaido region.
Chevron to supply LNG to Japan s Hokkaido Gas Reuters 1 hr ago
April 7 (Reuters) - Chevron Corp s unit will supply liquefied natural gas (LNG) to Japan s Northern Hokkaido prefecture, via a deal with Hokkaido Gas Co Ltd, the oil major said on Wednesday.
Chevron U.S.A. will supply about a half million tons of LNG over a period of five years starting April 2022 to Japan-based Hokkaido Gas, the company said in a statement.
The second-largest U.S. oil producer said its partnership with Hokkaido Gas will broaden its customer base in Japan, a market that is foundational to Chevron s LNG business.