Chevron Expands LNG Portfolio Amid Middle East Crisis
Chevron is expanding its global gas portfolio to meet growing demand from buyers concerned about energy security due to the crisis in the Middle East. President of Global Gas Freeman Shaheen said that the company's current capacity is around 20 million metric tons per annum, comprising 16 million tons of net gas production and 4 million tons contracted from the U.S. Gulf Coast.
Shaheen emphasized the need for diversity in supply to avoid being susceptible to spot markets that are not as liquid as crude and products. He highlighted Argentina and the Mediterranean region as promising areas for expansion, citing opportunities in Australia and Africa provided they meet Chevron's capital, fiscal, and regulatory requirements.
Chevron already has significant operations in Australia, running the country's largest LNG project, Gorgon, and the Wheatstone project. The company has a deal with Sembcorp Industries to supply up to 0.6 million tons per annum of LNG from 2028, primarily going to Japan. Shaheen expressed interest in securing a deal with India, noting that they are price-driven.
Shaheen attributed the growth in demand for gas to global market disruptions, including the Ukraine war and the Iran conflict, which have cut off supplies from top producers Russia and Qatar. He believes that Chevron's diversified portfolio will help meet this growing demand.