Chevron Targets Argentina and Mediterranean for LNG Growth as Buyers Seek Supply Diversity

Diversification push shaped by recent supply shocks

Chevron is pursuing new gas opportunities in Argentina and the Mediterranean to meet demand from buyers seeking security of supply after successive disruptions in global gas markets. President of Global Gas Freeman Shaheen, speaking on the sidelines of the Gastech conference in Bangkok, said the Ukraine war in 2022 and the more recent conflict involving Iran have cut supplies from major producers Russia and Qatar, lifting LNG prices. He framed the response in contracting terms as well as geography. "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 that buyers also want to avoid exposure to a spot market "that's not really as liquid as crude and products."

Argentina and East Mediterranean flagged as priority geographies

Shaheen pointed to Argentina as a high-potential area for crude and gas development and to the East Mediterranean as "a very exciting area for us as well." Beyond those two regions, he said Chevron also sees further opportunities in Australia and Africa, provided projects offer acceptable capital, fiscal, and regulatory terms. "We're looking to continue to expand that portfolio," Shaheen said.

Current LNG capacity and planned additions

Chevron currently has about 20 million metric tons per annum of LNG supply capacity. That total comprises 16 million tons of net gas production from its operated projects and 4 million tons contracted from the U.S. Gulf Coast that began operating in February and will ramp up over the coming years under existing agreements.

Mediterranean foothold and Australian anchor volumes

Chevron cemented its regional presence in the Mediterranean in June by securing regulatory approval to operate and lead gas exploration in an offshore block off Greece. In Australia, the company operates the Gorgon and Wheatstone LNG projects that supply Asian markets, with Japan as the anchor buyer alongside structural agreements into Singapore, China, and South Korea. In Singapore, Chevron signed a 2024 agreement to supply Sembcorp Industries with up to 0.6 million tons per annum of LNG starting in 2028.

Venezuela capital competition and project ranking

Any new commitments in Argentina, the Mediterranean, Africa, or Australia will be weighed against Chevron's existing heavy-capital regions, most notably Venezuela. The company and its joint-venture partners are evaluating capital allocations designed to more than double oil output in Venezuela to over $7 billion by 2031. "Everything is got to get analysed in our project queue and it gets ranked," Shaheen told Reuters, indicating that competing projects will be prioritized on commercial terms.

Follow-up signals

The next verifiable milestones include the ramp-up of the 4 million tons of contracted U.S. Gulf Coast LNG capacity over the coming years, the start of Chevron's 2024 supply agreement with Sembcorp Industries in 2028, and further decisions on Argentina and East Mediterranean projects that depend on securing acceptable capital, fiscal, and regulatory terms.