Chevron Eyes Wider LNG Footprint Amid Supply Shocks

Key Moments

Chevron expects about 20 million metric tons per annum of LNG supply capacity, combining 16 million tons of net production and 4 million tons from U.S. Gulf Coast contracts.
The company is evaluating new LNG growth in Argentina, the eastern Mediterranean, Australia, and Africa while weighing more than $7 billion of planned investment in Venezuela.
Chevron signed a deal in 2024 to supply Sembcorp Industries in Singapore with up to 0.6 million tons per annum of LNG starting in 2028.

Strategic Pivot Toward Diversified LNG Supply

BANGKOK, Sept 14 (Reuters) – Chevron is positioning itself to grow its global natural gas portfolio across regions including Argentina and the eastern Mediterranean as buyers seek more secure energy supply in light of the conflict in the Middle East, according to Chevron President of Global Gas Freeman Shaheen.

Shaheen said global gas markets have faced two major disruptions in the past four years, pointing to the Ukraine war in 2022 and the Iran conflict this year, which cut supplies from key producers Russia and Qatar and pushed liquefied natural gas prices higher.

“What we’re seeing from this crisis is that it just reinforces the need for diversity — diversity of supply and diversity of different contracting structures,” Shaheen said, adding, “and not leaving yourselves susceptible to a spot market that’s not really as liquid as crude and products.”

Current and Future LNG Portfolio

Chevron is set to have about 20 million metric tons per annum of LNG supply capacity. This consists of roughly 16 million tons of net gas production from its own projects and an additional 4 million tons secured through U.S. Gulf Coast contracts that began in February this year. Those contracted volumes are expected to increase over the coming years in line with existing agreements.

“We’re looking to continue to expand that portfolio,” Shaheen said in an interview on the sidelines of the Gastech conference in Bangkok.

He flagged Argentina and the East Mediterranean as particularly promising areas. “There’s great prospects out of Argentina with the development of crude and gas in that marketplace. The East Mediterranean is a very exciting area for us as well.”

Regional Growth Prospects and Constraints

Beyond Latin America and the Mediterranean, Shaheen said Chevron sees additional opportunities in Australia and Africa, provided that new projects meet the company’s requirements on capital efficiency, fiscal terms, and regulatory conditions. He added that the U.S.-Iran war has underscored the importance of maintaining a diversified gas portfolio.

Shaheen did not specify which countries or assets in Africa, Australia, or the eastern Mediterranean Chevron is targeting. He noted that in June, Chevron received approval to become operator and lead gas exploration in an offshore block off Greece, further expanding its position in that country.

The company is also balancing these potential LNG projects against its plans in Venezuela, where Chevron and its partners would invest more than $7 billion with the aim of more than doubling oil output by 2031.

“I’ve been hearing that Venezuela has a lot of capital that’s going to have to go that way coming up,” Shaheen told Reuters.

“Everything is going to get analysed in our project queue and it gets ranked.”

Established Australian Base and Asian Demand

Chevron already has a substantial presence in Australia, where it operates Gorgon, the country’s largest LNG project, as well as the Wheatstone project. A significant share of its Australian LNG is shipped to Japan.

“Japan continues to be our home base, and we have nice structural opportunities into Singapore,” Shaheen said, adding that China and Korea remain attractive markets.

In Singapore, Chevron signed an agreement in 2024 to supply Sembcorp Industries with up to 0.6 million tons per annum of LNG starting in 2028.

Region / Project	Role / Status	Key Detail
Global LNG portfolio	Supply capacity	About 20 million metric tons per annum (16 million tons net production + 4 million tons U.S. Gulf Coast contracts)
U.S. Gulf Coast	Contracted supply	4 million tons per annum, commenced February this year, ramping up over next few years
Argentina	Growth prospect	Seen as having “great prospects” with crude and gas development
East Mediterranean	Growth prospect	Described as “a very exciting area” for Chevron
Offshore Greece	Exploration	Chevron approved as operator and lead gas explorer in an offshore block
Venezuela	Oil investment	More than $7 billion planned to more than double oil output by 2031
Australia (Gorgon, Wheatstone)	Operating assets	Significant LNG operations, large portion of supply to Japan
Singapore – Sembcorp Industries	LNG sales contract	Up to 0.6 million tons per annum from 2028

Evolving Contracting Models and India Ambitions

Shaheen observed that LNG buyers are adjusting how they secure volumes. He said state-backed importers are increasingly prepared to sign agreements with portfolio suppliers rather than relying solely on government-to-government deals.

He also expressed interest in expanding Chevron’s presence in India, while pointing to current challenges around pricing expectations.

“I’d love to have a deal in India. It’s just they’re very, very headline-price driven,” Shaheen said. “I think India is still evolving. There’s going to be great opportunities over time.”