Yahoo Finance Chevron (CVX) Signs 5-Year LNG Pact with Japan's Hokkaido Gas
Chevron Corporation CVX recently informed that its wholly-owned subsidiary Chevron U.S.A. Inc. (Singapore Branch) has inked a deal with Japan’s Hokkaido Gas Co., Ltd. to supply liquefied natural gas (LNG) from Chevron's global LNG portfolio to the Hokkaido region.
Per the terms of the binding Sale and Purchase Agreement (SPA), effective April 2022, Chevron U.S.A. will supply integrated energy company Hokkaido Gas with around 500,000 tonnes of LNG over a five-year period.
John Kuehn, who presides Chevron Global Gas, a unit of Chevron USA; believes that its collaboration with Hokkaido Gas will expand its customer base in Japan, a key market for Chevron's LNG sector. He further said, “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.”
Chevron has an attractive LNG portfolio and boasts two massive facilities in Australia, namely Gorgon LNG project and Wheatstone Project. Gorgon LNG project is the largest single resource endeavor in Australia, dealing with the delivery of natural gas to international and domestic customers. Valued at $69 billion, it is one of the costliest energy projects, employing more than 10,000 people to construct the processing facility at Barrow Island.
Wheatstone project is an endeavor, jointly run by Chevron (operator, 64.14 %), Woodside (13 %), KUFPEC (13.4%), PE Wheatstone (partly-owned by JERA, 8%) and Kyushu Electric Power Company (1.46%). Two LNG trains with a total capacity of 8.9 million metric tonnes per year and a domestic gas plant are part of this foundation project. It strengthens Chevron's role as a leading natural gas supplier and an LNG operator in the Asia-Pacific region, particularly in conjunction with the Gorgon Project.
Brief on the Company
Chevron is one of the largest publicly-traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is a fully-integrated company, participating in every energy-related process, ranging from oil production to refining and marketing. Chevron recently issued capital spending and investment plans for the 2021-2025 forecast period.
Zacks Rank & Other Key Picks
Chevron currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the energy space include Matador Resources Co. MTDR, Diamondback Energy, Inc. FANG and Devon Energy Corp. DVN, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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