Chevron Targets Diversified LNG Portfolio Amid Middle East Crisis

Chevron, an American multinational energy corporation, is expanding its global liquefied natural gas (LNG) 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 stated that 'what we're seeing from this crisis is that it just reinforces the need for diversity, diversity of supply and diversity of different contracting structures.'

Chevron's current LNG supply capacity stands at 20-million tons a year, comprising 16-million tons of net gas production from its projects and 4-million tons contracted from the US Gulf Coast. Shaheen mentioned that 'we're looking to continue to expand that portfolio' with potential opportunities in Argentina, the Mediterranean, Australia, and Africa.

Argentina's development of crude and gas is seen as a promising prospect for Chevron, while the East Mediterranean region also presents an exciting area for expansion. Shaheen noted that these opportunities must be weighed against investments in Venezuela, where Chevron and its partners would invest more than $7-billion to double oil output by 2031.

Chevron already has significant operations in Australia, running the country's largest LNG project, Gorgon, and the Wheatstone project. The company also inked a deal with Sembcorp Industries to supply up to 0.6-million tons a year of LNG from 2028 in Singapore.

Shaheen expressed interest in securing a deal with India but noted that 'they're very, very headline-price driven.' He emphasized the importance of diversity and contracting structures in the global gas market, citing the recent disruptions caused by the Ukraine war and the Iran conflict as a reminder of the need for flexibility and adaptability.