Chevron Corporation’s subsidiary Chevron USA (CUSA) Singapore branch has signed a binding Sales and Purchase agreement (SPA) with Hokkaido Gas Co., Ltd to supply Hokkaido area in Japan with about a half million tons of liquefied natural gas (LNG), according to Chevron’s press statement.

According to the statement, the supply will be across five years starting in April 2022.

John Kuehn, President of Chevron Global Gas, a division of CUSA, stated: “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.”

Kuehen also added that “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.”