Chevron sees opportunity for LNG growth in Europe thanks to strong demand
Chevron sees continued strong demand for LNG in Europe
High prices in Europe will attract most US LNG in the near term
Chevron expected to increase Permian Basin production by 15% this year
By Bozorgmehr Sharafedin and Marwa Rashad
LONDON, Oct 12 (Reuters) – U.S. oil firm Chevron Corp expects high European liquefied natural gas (LNG) prices to attract the majority of U.S. LNG exports in the short term, a senior Reuters told Reuters on Wednesday. responsible.
Europe is determined to wean itself off Russian gas imports after its invasion of Ukraine, a move that opened the door to American suppliers. Its commitment to building import terminals and regasification facilities shows that the region’s demand for US exports could last.
“We’ve seen a huge increase in demand from European customers, so we’re adjusting to that,” said Colin Parfitt, who oversees the company’s shipping, pipeline, supply and trading operations. Europe will “not go back to the same flows from Russia as before,” he said in an interview in London.
Chevron is a major global producer of natural gas, pumping more than 7.5 billion cubic feet per day last year with more than half of its gas production in the United States and Australia.
The major also produces LNG in Australia and Angola, and recently gained a foothold in US LNG through purchase agreements with LNG producers Cheniere Energy Inc and private company Venture Global LNG.
The United States is the world’s largest gas producer with production of almost 99 billion cubic feet per day (bcfd), but because consumption is lower, at around 89 bcfd, there is room for a increased exports with expanding production.
“The demand for gas in the United States is about flat,” Parfitt said. “What’s growing in the United States is the demand for exports,” he said.
Parfitt said Chevron’s oil and gas production in the Permian Basin, America’s top oilfield, increased 7% in the first half of 2022 from the same period a year ago, and is expected to increase 15%. % over the whole year.
Chevron is also exploring options to “market” more gas from an eastern Mediterranean field off the coast of Israel, either through existing pipelines or alternatives to LNG, it said. he declares. (Reporting by Bozorgmehr Sharafedin and Marwa Rashad; Editing by Gary McWilliams and Marguerita Choy)