Chevron signs LNG deal with JOVO

Chevron signs LNG deal with JOVO

Chevron USA, a wholly subsidiary of Chevron Corporation (NYSE:CVX) has signed an agreement with Singapore Carbon Hydrogen Energy Pte. Ltd., a subsidiary of JOVO, for the delivery of LNG from Chevron’s global supply portfolio.

When the LNG sale and purchase agreement is finalised, JOVO is expected to receive up to 0.5 million metric tonnes per annum of LNG over the next five years, with the first delivery anticipated to arrive in 2018.

Mike Wirth, executive vice president of Chevron Midstream and Development said: “We are positioned to become one of the top 10 LNG suppliers in the world.”

China is moving in favour of natural gas over crude oil as a main component of its energy mix.

The government set a target of raising gas to 6.3% of the total energy mix in April. Natural gas represented 5.9% of total energy consumption last year.

JOVO is a privately owned Chinese energy firm.