Chevron Seeks LNG Deal with India Amid Pricing Concerns
Chevron is looking to secure an LNG deal in India, but pricing remains a decisive factor. Freeman Shaheen, Chevron's president of global gas, said the company would like to reach an agreement in India, where buyers are 'very, very headline-price driven'.
The opportunity for Chevron in India comes as energy buyers reassess how they obtain gas due to supply disruptions. Chevron is seeking to expand its global gas portfolio across Argentina, the East Mediterranean, Australia, and Africa.
The company currently has about 20 million metric tonnes per annum of LNG supply capacity, with 16 million tonnes from its own projects and 4 million tonnes contracted from the US Gulf Coast. Shaheen said Chevron wants to continue expanding that portfolio, with Argentina being a promising market due to its crude and gas development.
However, an India LNG agreement would depend on whether long-term supply can compete with the price expectations of importers. The contract would also need to be adapted to local purchasing behavior, as Indian buyers value security of supply but are sensitive to initial prices.