Chevron sees an opportunity to grow LNG supplies to Europe

American oil corporation Chevron expects that high prices for liquefied natural gas (LNG) in Europe in the short term will lead to a situation when most of the LNG will be exported from the United States.

Europe's refusal of Russian gas has opened the way for American companies. Numerous imported LNG regasification terminals indicate that in Europe the demand for exports from the US may continue.

According to Colin Parfitt, who supervises shipping and trading in the company, there has been an influx of customers from Europe, and Chevron is adjusting to that. If the demand for gas in the US hasn’t changed, then the demand for exports has increased.

Parfitt said the company increased its oil and gas production in the Permian Basin by 7% at the beginning of 2022 compared to the year's production. It is expected that the extraction of natural resources in the largest US oil field will increase by 15% per year. 

Chevron is an important producer of natural gas. The company was producing over 7.5 Bcf/d last year. Most of the gas was produced in the US and Australia.

The company also produces LNG in Angola. Recently, through purchase agreements with LNG producers Cheniere Energy Inc and Venture Global LNG, the company has gained a foothold in the US.

The USA is the world's largest producer of LNG. The production rate is 99 Bcf/d. However, consumption is only 89 Bcf/d, and there is an opportunity to sell LNG for export.