Chevron Seeks Diversified Gas Supplies Amid Market Disruptions

Chevron's President of Global Gas, Freeman Shaheen, emphasized the importance of diversity in gas supply during an interview at the Gastech conference in Bangkok. The current global gas market has experienced two major disruptions due to conflicts in Ukraine and Iran, driving up liquefied natural gas (LNG) prices.

Shaheen pointed out that these disruptions have reinforced the need for diverse supplies and contracting structures to avoid leaving buyers susceptible to spot markets with low liquidity. Chevron currently has a portfolio of 20 million metric tons per annum of LNG supply capacity, comprising 16 million tons from its projects and 4 million tons contracted from the U.S. Gulf Coast.

The company is looking to expand its global gas portfolio by exploring opportunities in Argentina, the Mediterranean region, Australia, and Africa. Shaheen mentioned that there are great prospects in Argentina due to the development of crude and gas resources, while the East Mediterranean is also an exciting area for Chevron. He noted that these projects need to offer attractive capital, fiscal, and regulatory terms.