Chevron Inks LNG Supply Deal with China’s JOVO Group

China: The Chevron Corp. announced that its wholly-owned subsidiary, Chevron U.S.A. Inc., has signed an agreement with Singapore-based Carbon Hydrogen Energy Pte. Ltd., a unit of China's JOVO Group Co., to supply liquefied natural gas (LNG) in China. Under the LNG Sale and Purchase Agreement, JOVO would receive up to 0.5 million metric tons per annum of LNG over five years, with the first cargo scheduled for 2018. The LNG business portfolio of JOVO includes a LNG receiving terminal, tank truck operations, CNG and PNG distribution in South China.

TechSci Research depicts that increasing consumption and limited natural gas production are the key factors which are projected to generate huge demand for Liquefied Natural Gas (LNG) in the east and southern part of the country. In 2015, domestic natural gas contributed around 69% share in total natural gas consumption in China, while the remaining was addressed by LNG and cross-country natural gas pipeline imports.

According to released report of TechSci Research, “China LNG Market Demand & Supply Analysis, By End-User, By LNG Terminals Forecast & Opportunities, 2011-2021”, the market for imported LNG is projected to grow at a CAGR of over 15% during 2016 - 2021, due to increasing peak saving demand from residential consumers for space heating requirements and rising demand for integrated LNG power plants. Some of the key consumers for LNG in China include power, industrial, residential and transportation sectors. In 2015, industrial sector accounted for the largest share in the country’s total natural gas consumption, owing to rising natural gas demand from heavy industries, smelting & pressing of ferrous metals, petrochemical plants, processing of petroleum, coking and processing of nuclear fuel and petrochemical plants.