Chevron’s new boss Balaji Krishnamurthy says Australia hasn’t fully embraced its gas opportunity

Chevron Australia’s new managing director Balaji Krishnamurthy says Australia possesses resources that are the envy of the world, but hasn’t yet realised its potential.

Chevron LNG project on Barrow Island, Western Australia. Picture: Ray Strange

Chevron’s new Australian boss warned the economy has yet to capitalise on its world-class gas reserves, but policy changes in the hands of the Albanese government could unlock a new wave of investment and reposition Australia as a global energy leader.

In his first interview since stepping into the role, Chevron Australia managing director Balaji Krishnamurthy said Australia possesses resources that are the envy of the world, but has not quite leaned into the economic and strategic advantages they offer.

“Australia has fantastic resources but we put all these artificial constraints on it. I believe it’s time to unshackle it. I’m looking at a country that is so well endowed. Around the world, countries would literally kill for a resource base that Australia has. I find it fascinating that Australia is still finding its way,” Mr Krishnamurthy told The Australian.

Chevron is among the country’s largest gas producers, operating the Gorgon and Wheatstone LNG projects in Western Australia — two cornerstone assets in Australia’s $90bn-plus LNG export industry. The company is also a major supplier to Asian markets, where demand for LNG is expected to remain robust through to the 2050s.

Workers at the Gorgon LNG and carbon capture and storage facility, operated by Chevron. Picture: Bloomberg

His comments come at a pivotal moment in the national energy debate. The Albanese government is advancing its clean energy transition with ambitious emissions targets and a surge in renewables investment, but it faces increasing pressure from industry to support gas as a stabilising force in the grid and a feedstock for heavy industry.

Mr Krishnamurthy welcomed steps such as the development of the Future Gas Strategy and progress on carbon capture and storage, but said the broader regulatory environment still lacks the certainty needed to attract long-term capital.

“It was really good to hear the minister commit to reforms around stakeholder consultation. It is a common concern in the industry and Chevron shares that concern,” said Mr Krishnamurthy.

“Working around the world in Thailand, Kazakhstan, the United States – I would say Australia has a very strong regulatory regime. However, having clarity around who is the lead regulator, making sure that we aren’t stepping on each other’s toes – I think that is very important.”

Chevron’s warning comes amid residual industry frustration over Labor’s 2022 intervention in the east coast gas market, which included the imposition of a $12/GJ price cap. The government defended the measure as necessary to shield households and businesses from surging prices, but critics argue it chilled investment and worsened the supply outlook.

Chevron Australia managing director Balaji Krishnamurthy.

The Australian Energy Market Operator has forecast a potential east coast shortfall as early as 2029 unless new supply is urgently brought online.

Recent developments, including the approval of Woodside’s North West Shelf extension to 2070, have been read by some as a sign the government may be adopting a more pragmatic stance, bolstered by its electoral mandate and a broader public acceptance of gas’s transitional role.

Still, industry leaders are looking to the upcoming review of the east coast gas market as a key litmus test. Sources say the government has committed to releasing terms of reference by the end of June. Some speculate Labor may consider a form of gas reservation for the east coast — a position it once criticised when proposed by the Coalition.

Adding to industry optimism was Resources Minister Madeleine King’s recent commitment to revisiting legislative changes that would close legal loopholes exploited by environmental groups in offshore approvals.

Legal challenges — including those that delayed Santos’ $5.7bn Barossa LNG project — have cited insufficient consultation with Indigenous communities. Labor had previously pledged to clarify which stakeholders must be consulted but later backed away.

With the global LNG market tightening and competitors moving fast, Chevron’s Mr Krishnamurthy said Australia must act decisively if it wants to remain a top-tier energy supplier.

Originally published as Chevron’s new boss Balaji Krishnamurthy says Australia hasn’t fully embraced its gas opportunity