The booming U.S. liquefied natural gas (LNG) industry

ExxonMobil and Chevron have already joined the ranks of the world’s largest natural gas and liquefied natural gas (LNG) producers. Yet, as the head of a Swiss natural gas producer and trader told the Financial Times: “If you operate in just one segment, you’ll enjoy two or three good years, then face a bad one.” Benjamin Lakatos, Chairman of MET Group, added: “To succeed in LNG, you need to be everywhere.” The red-hot LNG sector is challenging expectations for the energy transition. In recent years, the much-touted energy transition—while yielding substantial results—has increasingly come under pressure and scrutiny, especially under the second Trump administration in the United States. Shell, BP, TotalEnergies, ExxonMobil, and Chevron are rapidly expanding their LNG capacity, betting on long-term demand. Although wind and solar power generation has reached record highs, data show emissions in Europe continue rising—as coal and natural gas fill supply gaps. Critics warn that increased LNG use could undermine climate goals; yet industry experts—and the sector’s momentum—suggest energy transition targets may need reassessment in light of real-world demand trends. The energy transition was meant to suppress demand for oil, natural gas, and coal. The more electricity generated by wind and solar, the less demand there should be for hydrocarbons. In contrast, demand for all three continues to grow—especially for natural gas. As a result, major oil companies are doubling down on this core business, much to the frustration of transition advocates. Sam Meredith of CNBC noted in an article that recent quarterly reports from several oil majors underscored the strategic importance of LNG—indeed, LNG has become a focal point for today’s AI-era supermajors. Analysts say the AI era will drive a global surge in electricity demand—one that wind and solar alone cannot meet. Shell announced two months ago that it will add 12 million tonnes of LNG capacity by 2030. TotalEnergies is advancing its own LNG projects and engaging in LNG trading with other producers, aiming to increase the volume of LNG it manages by 50% by 2030. BP has launched a new offshore LNG project off Senegal and Mauritania. ExxonMobil and Chevron are equally ambitious: ExxonMobil plans to expand its LNG assets by 50% by 2030, while Chevron aims to further scale up its global LNG operations. According to Meredith, this may be a risky bet—given forecasts predicting natural gas demand will peak before 2030. These forecasts originate not only from the International Energy Agency (IEA), a strong proponent of the energy transition, but also from other prominent transition advocates—including climate-focused think tanks and wind and solar industry associations. Yet it is precisely the IEA that, in a recent report, stated natural gas demand—including LNG—is expected to keep growing.

Guyana has experienced rapid economic growth due to oil production in recent years. What development opportunities exist there for ordinary people?

Offshore Guyana: Hess’s Growth Lever Following its acquisition of Hess Corporation, Guyana has become a centerpiece region for Chevron. Through this acquisition, Chevron gained a 30% stake in the Stabroek Block offshore Guyana—a key asset now integral to its upstream portfolio. Its significance is unmistakable: in Q1 this year, its crude oil production reached 914,000 barrels of oil equivalent per day (boepd); counting pre-royalty production volumes under production-sharing contracts, this figure rises to 274,000 boepd. Guyana’s oil production costs rank among the most competitive globally along the oil supply cost curve, with breakeven prices for its six sanctioned projects ranging between USD 25–35 per barrel of Brent crude. The Liza Phase 1 project began production in Q4 2019, delivering over 120,000 barrels per day. Phase 2 commenced first oil in February 2022; the Payara project came online in Q4 2023; and the Yellowtail project started up in August, boosting Guyana’s daily oil output by 40%. The Uaru and Whiptail projects are scheduled to begin production in 2026 and 2027 respectively, pushing total capacity beyond 1.2 million barrels per day. (May 22, 2026) A stable LNG foundation may persist throughout the decade LNG accounts for over 15% of Chevron’s 2025 production—making it a vital source of earnings and growth. Chevron’s two major LNG projects in Australia—the Wheatstone project (64% equity) and the Gorgon project (47% equity)—supply Asian markets such as Japan and South Korea directly, with roughly 80% of output covered by long-term contracts. Supply disruptions in the Middle East may create some arbitrage opportunities—but the shutdown of the Leviathan field is likely to offset part of this year’s growth. Expanding either the Gorgon or Wheatstone projects would entail costs and scale comparable to launching entirely new projects. Once geopolitical tensions further de-escalate, Chevron may target Israel for natural gas business expansion, as buyers seek to reassess offshore logistics and redirect gas supplies away from high-risk regions. (May 22, 2026) Tengiz Overcomes OPEC+ Pressure Tengiz’s short-term outlook appears more robust, as Kazakhstan may secure higher production quotas following the UAE’s exit from OPEC+. Declining regional oil inventories may also prompt existing fields to ramp up output. Chevron holds a 50% stake in the Tengizchevroil (TCO) joint venture, which implemented quarterly startup of its “Future Growth Project” (FGP) in Q1 2025. Assisted by the Wellhead Pressure Management Improvement Project (WPMIP), full-capacity operation of FGP can add 260,000 barrels per day. When approved, the project’s projected breakeven price was USD 55 per barrel—but delayed startup has limited its value and ultimate recoverable reserves, as Chevron’s concession expires in 2033.

Chevron Expands LNG Portfolio Across Multiple Regions

11 hours ago

Chevron intends to expand its LNG portfolio in Argentina, the Mediterranean, Africa, and Australia to address supply security concerns arising from Middle East conflicts. This strategy aims to diversify supply sources and reduce reliance on single transport channels for long-term contracts.

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