Chevron Skips New LNG Capacity Amid Market Caution

Chevron has taken a cautious approach to investing in liquefied natural gas (LNG), unlike its peers. Under CEO Mike Wirth, Chevron has not greenlit any new LNG capacity since 2011.

This conservative strategy reflects the company's broader commitment to capital discipline and Wirth's views on the crowded LNG market facing rising competition from power generation.

Chevron is not entirely shying away from LNG investment. Instead, it has shifted its growth focus to off-take agreements, where the company secures long-term contracts for LNG purchases without building new capacity. This approach allows Chevron to participate in virtual integrated value chains and manage risks associated with the complex and competitive LNG market.