Key facts
- Chevron is seeking to expand its global LNG portfolio in regions including Argentina and the Mediterranean.
- The company aims to diversify supply and contracting structures due to energy security concerns.
- Chevron will have about 20 million metric tons per annum of LNG supply capacity.
- Chevron has operations in Australia, running the Gorgon and Wheatstone LNG projects.
- Chevron inked a deal in 2024 to supply Sembcorp Industries up to 0.6 million tons per annum of LNG from 2028.
- Chevron sees India as an attractive future market for LNG.
Chevron is actively seeking to expand its global liquefied natural gas (LNG) portfolio, with a particular focus on opportunities in Argentina and the Mediterranean, according to Freeman Shaheen, President of Global Gas. The company's strategy is driven by growing demand for energy security, heightened by recent disruptions in global gas markets stemming from the Ukraine war and Middle East conflicts.
Shaheen stated that these crises underscore the need for supply diversity and varied contracting structures, moving away from reliance on a spot market. Chevron anticipates having approximately 20 million metric tons per annum of LNG supply capacity, comprising 16 million tons from its own projects and 4 million tons contracted from the U.S. Gulf Coast starting in February and ramping up. The company is also exploring prospects in Australia and Africa, contingent on favorable capital, fiscal, and regulatory terms. In June, Chevron secured approval to lead gas exploration in an offshore block in Greece.
Beyond potential new ventures, Chevron is committed to significant investment in Venezuela, planning to more than double oil output by 2031 with over $7 billion in investment alongside partners. The company maintains substantial LNG operations in Australia, managing the Gorgon and Wheatstone projects, with Japan as a key market. Singapore is also a strategic hub, evidenced by a 2024 deal to supply Sembcorp Industries with up to 0.6 million tons per annum of LNG starting in 2028. China and South Korea are also viewed as attractive markets.
Shaheen noted a shift in buyer behavior, with state-backed importers increasingly favoring portfolio suppliers over government-to-government agreements. He expressed a strong interest in the Indian market, acknowledging its current focus on headline prices but anticipating significant future opportunities.