China's JOVO Group Signs LNG Deal with Chevron

China’s JOVO Group has signed a key terms agreement with Chevron to buy LNG.

Chevron’s US subsidiary, Chevron USA, will supply the fuel from its global portfolio. When the LNG sale and purchase agreement is finalized, JOVO is expected to receive up to 0.5 million metric tonne per annum of LNG over five years, with the first delivery expected to arrive in 2018, Chevron said 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.”

JOVO is a privately-owned Chinese energy company. Its LNG business portfolio includes a LNG receiving terminal, tank truck operations, urban pipelines for natural gas, automobile gas refilling stations, direct industrial clients, power plant customers and exclusive management of an industrial park in South China.

Earlier this year, JOVO signed signed long term LNG offtake agreement with SCT&E LNG. The deal, signed on May 13 in New York, provides for long-term offtake of LNG from the future SCT&E LNG export terminal to be built on Monkey Island in Cameron Parish, Louisiana. The agreement also paves way for a potential equity investment into the SCT&E LNG facility by the JOVO Group.