U.S.-based oil and gas giant Chevron said it has signed a deal to supply liquefied natural gas to JOVO, a privately-owned Chinese energy company.
Chevron’s wholly-owned subsidiary, Chevron U.S.A. Inc., has signed a key terms agreement with Singapore Carbon Hydrogen Energy Pte. Ltd., a unit of JOVO, for the delivery of the chilled fuel from Chevron’s global supply portfolio.
When the LNG deal is finalized, JOVO is expected to receive up to 0.5 million metric tons per annum of chilled gas over five years, with the first delivery expected to arrive in 2018, Chevron said in its statement on Wednesday.
“This agreement is another important step in the commercialization of Chevron’s natural gas holdings,” said Mike Wirth, executive vice president, Chevron Midstream and Development.
“We are positioned to become one of the top 10 LNG suppliers in the world,” Wirth added.