Chevron's acquisition of Anadarko – What does it mean for Chevron's LNG position?

Chevron looks set to acquire Anadarko and we assess the implications of the deal for Chevron's LNG position. Chevron is among the top-tier LNG producers and operates Angola LNG, Gorgon and Wheatstone. However, it was lacking LNG growth options and diversity outside of Australia. Anadarko's 26.5% stake in Mozambique LNG, which is close to FID on the initial 12.9 mmtpa base project at Area-1, provides a substantial immediate growth opportunity for the company. It holds huge long term potential too that could lead to a shift in Chevron's marketing strategy.