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As the West turns away from Russia, the East Med emerges as a potential hub for LNG

By Pieter Cleppe

US energy giant Chevron considers the East Mediterranean as a key growth opportunity for its LNG business, along with US LNG gas, S&P Global Commodity Insights reports.

The company told S&P Global Commodity Insights:

“Our global footprint has changed, and we’re trying to enable some of that supply to Europe where it is clearly needed at the moment…The US has plenty of gas — it’s just a question of liquefying it and transporting it, while the East Mediterranean is close to Europe. Those are the obvious places to help Europe with its supply need”.

The company has a large gas position in the East Mediterranean, after its acquisition of Noble Energy in 2020.

It further comments on the EU memorandum of understanding with Israel and Egypt on the potential for Israeli gas to be piped to Egypt and then liquefied for supply to Europe:

“With Europe wanting to move away from Russian gas, it clearly needs another gas source to fill that gap…Taking Israeli gas through LNG plants that are already built to get your gas to market seems sensible…In Europe, demand will kick up in the short to medium term as you have substitution for Russian gas,” he said.