Chevron targets Argentina and Mediterranean for global LNG expansion, deal with India

Freeman Shaheen, the President of Global Gas at Chevron, said that the company is looking to expand the global gas portfolio to include Argentina and the Mediterranean in order to meet the growing demand from buyers who are concerned about the security of energy due to the Middle East crisis.

The global gas market has experienced two major disruptions over the last four years. The Ukraine conflict in 2022, and the Iran conflict in this year have cut off supply from Russia and Qatar. This has pushed up the price of liquefied gas.

Shaheen added, "and not leaving yourself vulnerable to a spot-market that isn't really as liquid and crude and products."

Chevron's LNG capacity will be around 20 million?metric tonnes per annum. This includes 16 million tons from net gas production at its projects, and 4 million from contracts with the U.S. Gulf Coast. These began in February of this year, and will increase over the following years according to agreements.

Shaheen said in an interview at the Gastech conference, in Bangkok: "We are looking to continue expanding that portfolio."

The development of oil and gas in Argentina offers great opportunities. "The East Mediterranean is also a very interesting area for us."

He sees more opportunities in Australia and Africa if the projects have the right terms of capital, fiscal, and regulatory. The U.S.-Iran War has also reinforced the need to diversify a gas portfolio.

Shaheen didn't elaborate on where the company could expand in Africa, Australia, or the Eastern Mediterranean. Chevron expanded its presence in Greece by winning approval to be the operator and leader of gas exploration on an offshore block?off Greece.

These opportunities must be weighed up against Venezuela where Chevron, along with its partners, would invest over $7 billion in order to double the oil production by 2031.

"I have heard that Venezuela has a large amount of capital which is going to be needed in the future," said?Shaheen.

"Everything will be analyzed in our project queue, and it is ranked."

Chevron has already established significant operations in Australia. It runs the largest LNG project in the country, Gorgon, as well as the Wheatstone Project. A large portion of its Australian supplies goes to Japan.

Shaheen added that China and Korea are still attractive markets.

Chevron signed a 2024 deal with Sembcorp Industries to supply up to 0.6 million tons of LNG per year starting in 2028.

LNG ?buyers are also changing the way they secure supply, ?he said, with state-backed importers increasingly willing to sign contracts with portfolio suppliers rather than relying on government-to-government arrangements.

"I would love to get a good deal in India." Shaheen explained that they are very focused on the headline price. "I believe India is still developing. Over time, there will be many opportunities.

(source: Reuters)