American oil company Chevron expects that high liquefied natural gas (LNG) prices in Europe will attract most of the American exports, said CEO Colin Parfitt.
Europe has firmly decided to gradually halt imports of Russian gas due to Russia’s invasion of Ukraine, which has widely opened the door for American suppliers. The willingness to build terminals and other infrastructure indicates that demand for American exports could persist.
– We have noticed a strong increase in demand from European customers, so we are adapting to that – Parfitt told Reuters, who is responsible for shipping, pipelines, procurement, and trading at Chevron.
Gas volumes from Russia will no longer arrive in Europe as they once did, believes the head of the American company.
Chevron is a major global producer of natural gas and produced more than 212.4 million cubic meters of gas per day last year. More than half of its production is located in the U.S. and Australia.
The U.S. is the largest gas producer in the world, with nearly 2.8 billion cubic meters per day, but consumes 2.5 billion cubic meters per day, so it could increase exports if it boosts production.
– Demand for gas in the U.S. is essentially stagnant, while demand for exports is rising – said Parfitt.
Chevron’s oil and gas production in the Permian Basin, the largest field in the U.S., increased by seven percent in the first half of 2022 compared to the same period last year, he noted, and it is expected to rise by 15 percent for the entire year.
Chevron is also exploring options for the ‘commercialization’ of larger quantities of gas in fields in the eastern Mediterranean, near the coast of Israel, either through existing pipelines or some LNG alternatives, added the head of Chevron.
