Chevron Signs 10-Year LNG Supply Agreement With Singapore's Sembcorp

Chevron Corporation CVX, the U.S. energy major, has entered into a sale and purchase agreement with Sembcorp Fuels, a subsidiary of Sembcorp Industries. Per the terms of the agreement, Chevron will supply liquefied natural gas (LNG) to Singapore for more than 10 years, beginning 2028. Sembcorp mentioned that Chevron will provide approximately 0.6 million tons of LNG per year.Strengthening Singapore’s Energy SecurityIn 2021, the Energy Market Authority assigned Sembcorp as a new LNG importer for Singapore, authorizing the company to import and sell regasified LNG in the market. The agreement with Chevron should allow Sembcorp to expand its LNG portfolio, thereby increasing its supply of piped natural gas and liquefied sources globally. This should also contribute to Singapore’s energy security by diversifying its natural gas sources.Sembcorp aims to forge partnerships to strengthen its position and improve its capacity to support customers in Singapore. These collaborations enhance its ability to provide a secure and reliable supply of gas at a competitive cost, benefiting its customers. Sembcorp also mentioned that these strategic partnerships align with the broader goal of maintaining a stable energy supply during Singapore’s energy transition journey, as natural gas is a cleaner burning fuel compared to other fossil fuels.Chevron’s Commitment to Low-Carbon EnergyChevron stated that it shall leverage its strategic collaborations to provide greater access to low-carbon energy sources globally. The company’s long-term agreement with Sembcorp reflects its commitment to delivering stable, secure and clean energy resources to its customers to enhance energy security, while also working toward reducing emissions from its operations.CVX’s Zacks Rank and Key PicksCurrently, CVX carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are FuelCell Energy FCEL, TechnipFMC plc FTI and Nine Energy Service NINE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.TechnipFMCplc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks