HOUSTON, Jan 8 (Reuters) - Chevron ( CVX ) is positioned

to increase its free cash flow by $6 billion to $8 billion by

next year, and reduce expenses by "a couple billion dollars,"

said Chevron ( CVX ) CEO Michael Wirth on Wednesday.

The No. 2 U.S. oil producer expects results to benefit from

the start of new or expanded oil production projects in

Kazakhstan and the U.S. Gulf of Mexico to boost cash flow.

The global liquefied natural gas market could be slightly

oversupplied in the back half of this decade, he also said in

remarks at the Goldman Sachs Energy, CleanTech & Utilities

Conference in Miami.

Chevron ( CVX ) is prepared for a "prompt close" later this year of

its $53 billion deal to acquire oil producer Hess Corp. ( HES )

The merger has been approved by shareholders and U.S.

regulators, but stalled by a contract arbitration challenge by

Exxon Mobil ( XOM ) and CNOOC, Hess' partners in a

Guyana oil production joint venture.

(Reporting by Sheila Dang in Houston)