Chevron May Pass Rivals to Become Fourth-Largest LNG Producer
Chevron Corp. may overtake rivals such as Exxon Mobil Corp., BG Group Plc and state companies in Indonesia and Algeria to become the fourth-largest liquefied natural gas producer as new ventures start, an official said.
Chevron may climb to be second behind Royal Dutch Shell Plc among non-state companies in 2020, Stephen Del Regno, managing director for Asia, said at the World LNG Series conference in Singapore today. Projects in Australia, Africa and South-East Asia will boost supplies will boost Chevron from its current ranking of 20 among all producers.
Chevron’s Gorgon and Wheatstone ventures in Australia are among A$200 billion ($192 billion) of proposed LNG ventures in the Pacific nation targeting Asian demand for cleaner-burning alternatives to coal, according to figures from the Australian Petroleum Production & Exploration Association. The biggest of the projects is Chevron’s A$43 billion Gorgon development on Barrow Island off the northwestern coast.
The share of Asian LNG purchases in the global mix will drop to 54 percent by 2020 from 64 percent in 2015 as European LNG purchases rise, according to the presentation. Asia’s share was about 63 percent last year, according to BP Plc’s annual energy review.
Qatar Petroleum Ltd. will retain its position as the world’s biggest supplier in 2020, according to a presentation by Del Regno, based on Wood Mackenzie Research Consultancy data. Shell will be second and Algeria’s Sonatrach third.
Chevron said on Sept. 16 that it aims to supply China National Petroleum Corp., the nation’s largest oil company, with LNG from its proposed Wheatstone project.
LNG is natural gas that’s been chilled to liquid form for transportation by ship to destinations not connected by pipeline.
To contact the reporter on this story: Dinakar Sethuraman in Singapore at dinakar@bloomberg.net.
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.
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