KEY POINTS
- Chevron plans to expand its gas portfolio across new regions.
- Middle East conflicts are driving demand for diversified LNG supplies.
- Argentina, Africa, Australia and the Mediterranean are key areas of interest.
Chevron is looking to expand its global natural gas and liquefied natural gas, LNG, portfolio as repeated supply disruptions and growing concerns over energy security push buyers to seek more reliable and diversified sources of fuel.
The US energy major is assessing opportunities across Argentina, the eastern Mediterranean, Australia and Africa as it seeks to strengthen its position in the global gas market.
Chevron Global Gas President Freeman Shaheen said the disruptions caused by geopolitical conflicts had reinforced the need for gas buyers and suppliers to diversify their sources and contract structures.
The global gas market has faced major disruptions in recent years, with the war in Ukraine in 2022 affecting supplies from Russia and the latest conflict involving Iran creating further uncertainty around energy flows from the Middle East.
The disruptions have contributed to higher LNG prices and increased concerns among energy consumers about relying too heavily on a small number of suppliers.
Shaheen said the latest crisis had strengthened the case for greater diversity in both supply sources and contracting arrangements.
He also warned against excessive dependence on spot markets, which can be less liquid and predictable than markets for crude oil and refined petroleum products.
The shift in strategy reflects growing efforts by energy companies and major gas buyers to secure long-term supplies from different regions and reduce their exposure to geopolitical shocks.
Chevron targets new gas opportunities
Chevron currently expects to have about 20 million tonnes per annum of LNG supply capacity.
Of this total, about 16 million tonnes would come from its own net gas production projects, while another four million tonnes would come from contracted supplies from the US Gulf Coast.
The US Gulf Coast contracts began in February this year and are expected to increase gradually over the coming years in line with existing agreements.
Shaheen said Chevron planned to continue expanding the portfolio, pointing specifically to Argentina and the eastern Mediterranean as promising areas.
Argentina has attracted growing attention from international energy companies because of its significant oil and gas resources, particularly the Vaca Muerta shale formation. Increased development in the country could create opportunities for additional gas production and LNG exports.
Chevron also sees potential in the eastern Mediterranean, where new exploration and development activities could provide additional sources of gas for regional and international markets. Chevron is also considering opportunities in Africa and Australia, although Shaheen did not identify specific countries or projects under consideration.
He said any potential investment would have to offer suitable capital requirements as well as attractive fiscal and regulatory conditions.
The company has already strengthened its position in the eastern Mediterranean. In June, Chevron received approval to become operator and lead gas explorer in an offshore block in Greece, expanding its exploration presence in the region.
Australia remains another important part of Chevron’s gas portfolio. The company operates the country’s Gorgon LNG project, one of its largest gas developments, as well as the Wheatstone project.
A significant share of Chevron’s Australian LNG supply is sold to Japan, which remains an important long-term market for the company.
