Chevron Targets Argentina and Mediterranean for LNG Growth Amid Energy Security Concerns

Global gas markets have absorbed two major supply shocks over the past four years. The 2022 Ukraine war and recent conflicts involving Iran have cut off major pipeline and liquefied natural gas supplies from top producers Russia and Qatar, driving prices upward.

“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 in an interview with Reuters on the sidelines of the Gastech conference in Bangkok, adding that buyers want to avoid overexposure to illiquid spot markets.

LNG Supply Capacity and Global Expansion Targets

Chevron currently commands roughly 20 million metric tons per annum of LNG supply capacity. According to company figures, this total combines 16 million tons of net gas production from its operated assets with 4 million tons contracted from the US Gulf Coast, which commenced operations in February and will ramp up over the coming years.

To grow this footprint, Chevron is evaluating upstream and midstream prospects in South America and southern Europe. Shaheen pointed to Argentina as a high-potential market for crude and gas development, while identifying the East Mediterranean as an increasingly vital region for future supply.

Those expansion efforts extend globally, with Shaheen noting that Africa and Australia remain under consideration. However, he emphasized that any new commitments depend strictly on securing favorable capital, fiscal, and regulatory terms.

Venezuela Investments and Portfolio Competition

Global portfolio additions are weighed directly against active projects in other heavy-capital regions, most notably Venezuela. Chevron and its joint-venture partners are weighing capital allocations designed to more than double oil output in Venezuela to over $7 billion 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 got to get analysed in our project queue and it gets ranked.”

In the Mediterranean, Chevron cemented its regional footprint in June by winning regulatory approval to operate and lead gas exploration in an offshore block off Greece.

Meanwhile, in its established operating base in Australia, Chevron operates the Gorgon and Wheatstone LNG projects, which supply key Asian markets. Japan remains the anchor market for Australian volumes, alongside structural supply agreements into Singapore, China, and South Korea. 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.

Shifting Contracting Models and Asian Demand

The recent geopolitical instability has altered how state-backed importers secure long-term energy supplies. Rather than relying on traditional government-to-government arrangements, buyers increasingly favor direct contracts with large portfolio suppliers.

When asked about expanding into South Asia, Shaheen indicated that India remains an attractive target despite current pricing sensitivities. “I’d love to have a deal in India,” Shaheen said. “It’s just they’re very, very headline-price driven. I think India is still evolving. There’s going to be great opportunities over time.”