SAN RAMON, Calif.Chevron Corp. April 7 announced its wholly owned subsidiary Chevron U.S.A. Inc. (CUSA) has signed a binding sale and purchase agreement (SPA) with Hokkaido Gas Co. Ltd. for the delivery of 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.