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 to the Ishikari terminal in the prefecture. Chevron also operates the Wheatstone and Gorgon LNG export terminals in Australia, which supply the super-chilled fuel throughout Asia.

“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,” Kuehn said.

Wednesday’s announcement follows another from Chevron in February in which it agreed to supply Pavilion Energy Trading & Supply Pte. Ltd. with 500,000 tons of LNG annually for delivery to Singapore beginning in 2023. That deal requires Chevron to track emissions along the value chain as cleaner supply agreements have gained traction. 

Chevron’s moves have come among a broader push among LNG buyers and sellers to secure deals ranging from five to 10 years in recent months. Cheniere Energy Inc., New Fortress Energy Inc., Qatar Petroleum and Woodside Petroleum Ltd., and others, have all inked long-term agreements. Many of the new deals ensure additional supplies in Asia after prices spiked to record highs in the region last winter amid a historic cold snap that left many end-users short of supplies and scrambling for cargoes to meet demand.