Oil and gas Giant Chevron is expecting to become one of the world’s leading producers of liquefied natural gas in the next five years.
“With projects under construction at Gorgon and Wheatstone, along with our existing equity shares at Angola LNG and the Northwest Shelf, we expect to become one of the top 10 LNG suppliers in the world within the next five years,” John Watson, Chairman and CEO of Chevron, said at the sidelines of the World Gas Conference currently being held in Paris.
According to Watson, this growth in Chevron’s LNG business will help the company reach its target of 3.1 million barrels of oil equivalent production per day in 2017, a 20 percent increase from 2014 production levels.
Watson said that a major portion of the projected growth in energy demand around the globe will be compensated by natural gas, much of it delivered to market as LNG.
Achieving this growth will require the industry to move forward on multiple, geographically diverse projects today to ensure sufficient supplies in the future.
“The Gorgon LNG facility will supply just over 15 million tons of LNG per year. So the world will need more than a Gorgon-sized project each year for nearly 10 years to meet projected demand,” said Watson.
The industry will have to come up with new and innovative approaches to ensure the necessary infrastructure is built.
“Chevron is doing its part. We are already a leading global supplier of natural gas, with resources on six continents. Natural gas is rising to about 40 percent of our portfolio, from about 35 percent 10 years ago,” Watson concluded.
LNG World News Staff; Image: WGC 2015