Chevron Eyes LNG Buildout in Europe as Methane Rules Loom

Chevron is considering investing in European liquefied natural gas (LNG) import infrastructure, according to Freeman Shaheen, president for global gas at Chevron. The company's interest in Europe is driven by the region's growing demand for LNG, particularly after the 2022 energy crisis cut off most Russian deliveries by pipeline.

The EU's methane rules are a key factor in Chevron's decision-making process. The proposed regulations would require fossil-fuel imports to meet monitoring, reporting, and verification standards aimed at cutting methane emissions. Imports that exceed a set methane-intensity threshold would face penalties starting in 2030.

Chevron is also evaluating options to grow its LNG operations outside of Europe, including turning gas from the Eastern Mediterranean and Argentina into cash through a floating LNG export facility. The company is assessing additional volumes from the US as well.