Chevron Corp. said Wednesday that it has signed a binding sales and purchase agreement (SPA) to supply liquefied natural gas (LNG) to a utility in Hokkaido, Japan, beginning in 2022.

Under the deal, affiliate Chevron U.S.A. Inc. would provide 500,000 tons of LNG from 2022 to 2026 to Hokkaido Gas Co. Ltd. With harsh winters, Hokkaido is the second largest, northernmost and least developed of Japan’s four main islands.

John Kuehn, president of Chevron Global Gas, called the prefecture a “key growth area” for the company. He added that the deal “broadens our customer base in Japan, a market that is foundational to our LNG business.”

Hokkaido Gas provides city gas and electricity, along with other energy services. Chevron would deliver the LNG from its global portfolio...