Chevron is looking at expanding its natural gas business and opportunities in Argentina, the Mediterranean, Africa, and Australia, as it aims to offer diversified LNG supply to its customers, Freeman Shaheen, President of Global Gas at Chevron, told Reuters on Monday.
The energy crisis in the wake of the Middle East conflict that trapped LNG supply from Qatar and the United Arab Emirates (UAE) has prompted buyers to seek diversification and diverse contracting structures.
“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 told Reuters.
Chevron looks to expand its portfolio from prospects in Argentina, the East Mediterranean, Australia, and Africa, the executive said in an interview with the publication.
Chevron is expanding its footprint in Argentina’s shale play Vaca Muerta, alongside other major U.S. producers. The U.S. supermajor is also building a portfolio of exploration blocks offshore Greece and Cyprus.
In Australia, Chevron operates two massive LNG projects: Gorgon, which its 15.6 million tons in capacity is the larger one—and the largest in Australia as a whole. The other, Wheatstone, can produce 8.9 million tons of liquefied natural gas annually. The two together account for about 5% of global LNG supply.
In Africa, the U.S. supermajor is also boosting exploration efforts and discovery success rates.
Last month, Chevron announced a new oil and gas condensate discovery offshore Angola, hitting more than 2,000 feet of hydrocarbons in a Block 0 exploration well that could be tied directly into the company’s existing production infrastructure in the country.
Speaking to Reuters on the sidelines of a gas conference in Thailand, Chevron’s Shaheen did not specify which opportunities the corporation would pursue.
But the major plans to raise its LNG portfolio in the coming years, with supply as diverse as from Argentina to the Mediterranean and Africa, to meet customer needs of diversified LNG supply that doesn’t not depend on one chokepoint for shipment.
By Michael Kern for Oilprice.com
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