Oil and Gas News

Chevron locks in LNG supply to Japan

Woodside LNG agreement Strandline

Chevron and Hokkiado Gas have struck a deal for the delivery of liquified natural gas (LNG) from Chevron’s Australian LNG portfolio to Japan.

As part of the sale and purchase agreement (SPA), Chevron will supply Hokkaido Gas with 500,000 tonnes of LNG over a period of five years, set to start in April 2022.

President of Chevron global gas John Keuhn said the SPA marks the company’s first commitment to collaborate in diversifying energy solutions and advancing a low carbon future in the Hokkaido area.

“We are delighted to design and execute a 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,” he said.

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.

The agreement follows Chevron awarding AGC Industries the longest maintenance master contract currently offered in the Australian oil and gas market for all of its onshore and offshore facilities in north-west Australia.

The 10-year master contract with AusGroup subsidiary AGC Industries, allows Chevron to order full-service asset maintenance for all of its onshore and offshore natural gas and oil production facilities. 

AGC expects that the contract will see it deliver a diverse and complete range of services, including: management, planning, scheduling and supervision; painting insulation and fireproofing (PIF); scaffolding including engineering services; rope access (central trades); workshop management; asset management (hire equipment special tools); procurement and maintenance; crane operation (rigging) and maintenance.