Chevron: LNG Prices Expected to Remain High in the Next Six Months, with AI and Energy Security Supporting Long-term Demand

(1) Krishna Murthy, President of Chevron Australia, stated that LNG prices, which have surged significantly since the outbreak of the US-Iran war, are unlikely to fall in the short term and he finds it difficult to foresee any price declines in the next six months or so. Due to its proximity to Asia, Australian LNG currently enjoys a price premium. Chevron operates the Gorgon and Wheatstone projects in Australia.(2) The disruption of exports from Qatar, which previously supplied about one-fifth of global LNG, has pushed up prices and benefited Chevron; however, it has also caused a certain degree of demand contraction in the short term. In the long term, countries are seeking alternative energy sources to guard against future supply shocks, and there are risks of declining LNG consumption. Nevertheless, the development of artificial intelligence will be a key driver for LNG demand growth, and related opportunities exist in Australian data centers.(3) This war has also prompted clients to increasingly favor signing long-term supply contracts, with energy security becoming a primary concern. Krishna Murthy said that demand adjustments will continue to be seen in the short term, but the long-term fundamentals, especially for LNG, remain very strong.