Chevron eyes LNG growth

US energy giant Chevron, the operator of the Gorgon and Wheatstone projects in Australia and the Angola LNG plant, is looking to further boost its LNG position as Europe looks to secure additional supplies.

“So LNG is on everybody’s mind these days. It’s important to meeting Europe’s needs. It’s important to delivering a lower carbon energy system globally, and we see this strong market here in the near term,” Chevron’s CEO Mike Wirth told analysts during the company’s first-quarter earnings call on Friday.

Wirth said Chevron would like to grow its LNG position as the “world needs it”, but “it’s got to compete for capital.”

“We got a number of options in the Eastern Mediterranean. We’re talking to some people here in the US. You may have seen media reports that we have been talking to people in the Middle East about expansion projects there. So we’re evaluating a number of different opportunities,” he said.

US LNG export

These developments include the Leviathan project in Israel which could have a floating LNG plant or deliver gas to other liquefaction facilities in the region.

Chevon is also looking at US LNG export opportunities as the firm has significant acreage in the US.

Wirth said that Chevron has got a “lot of gas production” in the US that largely prices at Henry Hub today.

“And there are these projects that are in the process for LNG export facilities. We’ve had discussions with a number of those developers, nothing to say more than we’ve had discussions at this point,” the CEO said.

“But that’s part of our LNG portfolio that we’ve been very focused on the Pacific Basin historically. And as the Atlantic Basin markets now look a little bit different as we flow gas from our West African assets into the Atlantic Basin, it may make sense for us to have some US supply as well,” Wirth said.

Gorgon, Wheatstone

Earlier this year, Wirth said Chevron expects to have “strong” operational performance this year at its 15.5 mtpa Gorgon LNG facility in Western Australia, following several train shutdowns during the last two years.

The firm completed major turnaround on all three trains.

Chevron also conducted asset integrity work across the three Gorgon trains, not related to incident.

“A little bit of that came into the first quarter of this year,” Wirth said on Friday.

Besides Gorgon, Chevron is also working on its 8.9 mtpa Wheatstone LNG plant near Onslow in Western Australia.

“Wheatstone has a turnaround underway right now of one of the two trains and also the offshore platform and some common facilities,” he said.

“The good news is that part of the turnover is behind us right now. And we’re in the process of resuming production at one of the two trains there at Wheatstone and should have first LNG any day now,” Wirth said.

“And actually, the second train will be early May,” he added.

Angola LNG maintenance

Chevron is also looking to start maintenance at the 5.2 mtpa LNG export plant in Soyo, Angola in the second quarter of this year.

“Second quarter takes all the planned turnaround activity essentially or the majority of it,” he said.

In the first quarter, Angola LNG returned over $500 million of capital to Chevron.

“That’s a function of operating an LNG facility and selling it into the European gas markets at TTF prices. However, adjusted to the accounting rules, it’s flowing through cash from investing and not cash from ops. But for all intents and purposes, it is operating cash flow,” finance chief Pierre Breber said during the call.

- Advertisements -

Most Popular

Delfin plans to take FID on first floating LNG producer in Q2

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, is expecting to take...

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

Mexico Pacific seals another LNG supply deal with Shell

A unit of LNG giant Shell has signed another long-term deal to buy liquefied natural gas from Mexico Pacific,...

More News Like This

Angola LNG cancels tenders due to production issues

Angola LNG has canceled tenders due to production issues at the 5.2 mtpa liquefaction plant in Soyo. "I can confirm...

Jera, Chevron ink CCS pact

Japan’s LNG trader and power generation firm, Jera, and US energy giant Chevron have signed a memorandum of understanding...

Chevron upgrading LNG fleet to further slash emissions

Chevron's shipping unit has contracted a unit of Singapore's Sembcorp Marine to install reliquefaction systems and other tech on...

Chevron, NewMed Energy approve budget for Leviathan FLNG

US energy giant Chevron and Israel’s NewMed Energy will invest $51.5 million for the pre-FEED work on a floating...