Chevron is planning to widen its global gas operations, with interests stretching from Argentina to the Mediterranean. This move aims to meet the increasing energy demands from customers who are concerned about energy security, especially in light of the recent crises in the West Asia region, according to Freeman Shaheen, the company’s President of Global Gas.
In recent years, the global gas market has faced significant challenges. The war in Ukraine in 2022 and the ongoing conflict in Iran have disrupted supplies from major producers like Russia and Qatar, leading to a spike in liquefied natural gas (LNG) prices.
Shaheen emphasized that the recent crises highlight the importance of having a diverse energy supply. “We need a variety of sources and different types of contracts,” he stated. He warned against relying solely on a less liquid spot market, which is not as stable as traditional crude oil markets.
Currently, Chevron boasts an LNG supply capacity of about 20 million metric tons per year. This includes 16 million tons from its own gas production projects and another 4 million tons contracted from the U.S. Gulf Coast, which began supplying in February and will increase in the coming years according to existing contracts.
Shaheen spoke about the company’s growth potential at the recent Gastech conference held in Bangkok, noting, “Argentina has tremendous potential for gas and oil production. The East Mediterranean is also an exciting region for us.” He mentioned that there are further prospects in Australia and Africa, depending on the available investment conditions.
While he did not specify exact locations for expansion in Africa and Australia, he mentioned that Chevron had recently secured approval to explore for gas in an offshore block near Greece. However, the company must also consider investments in Venezuela, where it plans to invest over $7 billion to significantly increase oil output by 2031.
Shaheen remarked, “We have to prioritize our projects and evaluate them based on their potential.” Chevron already has major operations in Australia, including the Gorgon and Wheatstone projects, with a significant portion of its Australian gas directed to Japan.
“Japan remains our key market, and we see great potential in Singapore as well,” he added, noting that China and South Korea are also vital markets. Chevron recently entered into a contract to supply Sembcorp Industries in Singapore with up to 0.6 million tons of LNG annually starting in 2028.
As market dynamics shift, buyers are adjusting how they secure their gas supplies. State-backed companies are increasingly open to signing agreements with various suppliers instead of sticking to traditional government-based contracts.
Shaheen expressed interest in the Indian market, saying, “I would love to strike a deal there, but they tend to focus heavily on market prices. India is evolving, and I believe there will be great opportunities in the future.”
