Chevron is seeking to expand its global liquefied natural gas (LNG) portfolio amid ongoing disruptions in energy markets caused by geopolitical conflicts in the Middle East and Eastern Europe. Speaking at the Gastech conference in Bangkok, Freeman Shaheen, Chevron’s Global Gas president, highlighted the company’s focus on diversifying supply sources and contracting structures to reduce exposure to volatile spot markets.
The recent crises involving the Ukraine war in 2022 and the current conflict between the US and Israel against Iran have impacted major gas suppliers, including Russia and Qatar, leading to tighter LNG supplies and higher prices worldwide. These developments have pushed Chevron to pursue new gas hubs across several regions, including Argentina, the Eastern Mediterranean, Australia, and parts of Africa.
Chevron currently holds an LNG supply capacity of approximately 20 million tonnes per annum. This includes 16 million tonnes from its own production projects and four million tonnes under contract from the US Gulf Coast, which came online in February and is expected to scale up over the coming years. Shaheen indicated that the company intends to grow this portfolio further, citing promising opportunities in Argentina’s crude and gas sectors and the Eastern Mediterranean, where Chevron recently secured approval in June to operate and lead gas exploration in an offshore block off Greece.
While details about potential expansions in Africa and Australia were not disclosed, Shaheen noted that any projects would have to meet Chevron’s requirements for capital investment, fiscal terms, and regulatory environments. He acknowledged that the ongoing conflict in the Middle East has reinforced the strategic importance of a diversified gas portfolio.
At the same time, Chevron is balancing these new opportunities with its existing commitments, including a planned $7 billion investment in Venezuela aimed at more than doubling oil production by 2031. Shaheen remarked that the company will carefully evaluate and rank its projects to determine priority and allocate capital accordingly.
In Australia, Chevron maintains a strong presence, operating the country’s largest LNG project, Gorgon, along with the Wheatstone project, with a significant share of the LNG exports directed to Japan, which Shaheen described as Chevron’s “home base.” He also noted structural growth opportunities in Singapore as part of the company’s broader Asia-Pacific strategy.
The company’s approach reflects a broader industry trend of seeking resilience amid geopolitical uncertainties and shifting supply dynamics, emphasizing diverse sources and flexible contract arrangements to better navigate the evolving global energy landscape.