Chevron and Hokkaido Gas Co., Ltd. Sign LNG Agreement

Rhea-AI Summary

Chevron Corporation's subsidiary, Chevron U.S.A. Inc. (Singapore Branch), has signed a Sale and Purchase Agreement (SPA) with Hokkaido Gas Co., Ltd. to supply approximately half a million tons of liquefied natural gas (LNG) over five years, beginning April 2022. This agreement expands Chevron's customer base in Japan, enhancing its LNG operations in a key growth area. Chevron aims to provide diversified energy solutions and promote a lower carbon future through this partnership.

Positive

• Expansion of customer base in Japan, a crucial market for LNG.
• Delivery of approximately 500,000 tons of LNG over five years, starting April 2022.
• Strengthening commitment to low carbon initiatives through collaboration with Hokkaido Gas.

Negative

• None.

Chevron Corporation (NYSE: CVX) today announced its wholly-owned subsidiary Chevron U.S.A. Inc. (Singapore Branch) (“CUSA”) has signed a binding Sale and Purchase Agreement (SPA) with Hokkaido Gas Co., Ltd. for the delivery of liquefied natural gas (LNG) from Chevron’s global LNG portfolio to the Hokkaido area.

Under the agreement, CUSA will supply Hokkaido Gas with about a half million tons of LNG over a period of five years starting April 2022.

“We are delighted to design and execute a Sales and Purchase Agreement (SPA) with our new partner Hokkaido Gas that will bring Chevron LNG directly to Hokkaido, a key growth area. It broadens our customer base in Japan, a market that is foundational to our LNG business. This new SPA represents Chevron’s commitment to collaborate with Hokkaido Gas in diversifying energy solutions and advancing a lower carbon future in the Hokkaido area,” said John Kuehn, President of Chevron Global Gas, a division of CUSA.

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 Corporation is one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company's operations. Chevron is based in San Ramon, California. More information about Chevron is available at www.chevron.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210407005422/en/

FAQ

What is Chevron's recent agreement with Hokkaido Gas?

Chevron U.S.A. Inc. signed a SPA to deliver half a million tons of LNG to Hokkaido Gas over five years.

When does the LNG supply agreement with Hokkaido Gas start?

The LNG supply agreement begins in April 2022.

How much LNG will Chevron supply to Hokkaido Gas?

Chevron will supply approximately 500,000 tons of LNG.

What market is Chevron expanding into with the Hokkaido Gas agreement?

Chevron is expanding into the Japanese market, particularly in the Hokkaido area.

What are Chevron's future goals with the Hokkaido Gas partnership?

Chevron aims to diversify energy solutions and advance a lower carbon future.