MRC -- Chevron expects 2024 capital expenditures (capex) of $15.5bn-16.5bn for its subsidiaries and $3bn for its affiliates, the US-based energy major said on Wednesday.
Two-thirds of its planned $14bn upstream spending is allocated to the US, including $6.5bn to develop its US shale and tight portfolio. About 80% of its estimated $1.5bn downstream spending is allocated to the US. Both budgets include about $2bn in lower carbon capex.
For its affiliates capex, about a third is for its Chevron Phillips Chemical (CP Chem) joint venture, including the Golden Triangle Polymers Project in the US and Ras Laffan Petrochemical Project in Qatar.
Qatar Energy and CP Chem began construction on the $8.5bn Golden Triangle Polymers Project integrated cracker in March. The companies secured $4.4bn funding for the Qatar cracker and polymers complex in October. Start-up for both projects are expected in 2026.
Meanwhile, nearly half of Chevron’s affiliates capex will be for its Tengizchevroil’s integrated Future Growth Project – Wellhead Pressure Management Project (FGP-WPMP) project in Kazakhstan, with WPMP field conversion to start up in H1 2024.
With the acquisition of PDC Energy, Chevron announced an annual capex guidance of $14bn-16bn through 2027. Chevron's $53bn acquisition of US oil major Hess Corp is expected to close in H1 2024. Chevron produces crude oil and natural gas and manufactures transportation fuels, lubricants, petrochemicals and additives.
We remind, Chevron Lummus Global LLC announced the completion and successful startup of an ISOTERRA unit as part of Chevron's renewable fuel conversion project at their El Segundo Refinery in Southern California. The ISOTERRA unit leverages both the refinery's existing assets and Chevron Lummus Global's proprietary catalyst and reactor internals technology to achieve exceptional diesel yields.