Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Chevron’s $54bn LNG plant hits new snag

Chevron's Gorgon LNG project on Barrow Island has been struggling with CCS, Australia. Source: Chevron Australia Pty Ltd. via Bloomberg
Chevron's Gorgon LNG project on Barrow Island has been struggling with CCS, Australia. Source: Chevron Australia Pty Ltd. via Bloomberg

Chevron’s Gorgon liquefied natural gas plant shut a production train for about a month, at least the eighth outage since operations started 14 months ago at the most-expensive project in the company’s history.

Train 1 at the $54 billion project on Barrow Island off northwest Australia shut last week to replace a failed flow-measurement device, Cameron Van Ast, a Perth-based spokesman, said by email. Other routine maintenance will be performed during the shutdown and the plant’s other two production trains are operating normally, he said.

LNG import prices in Japan, the world’s biggest buyer, averaged about $9 per million British thermal units in 2009 when the project was sanctioned, then shot up as high as $18 during construction before sliding back below $6 after it started production amid a global glut, according to data from LNG Japan Corp.

“The issue with Train 1 is because they have had these frequent interruptions it creates some uncertainty for Asia Pacific LNG markets,” said Wood Mackenzie Ltd.’s Australia analyst Saul Kavonic. “Particularly if it can be shut off at short notice — that can result in less cargoes on the market, which combined with other factors could have an impact on spot pricing in the short term.”

The outage is the latest setback for the largest resource development in Australia’s history, which faced delays, cost overruns and labor unrest during construction. Gorgon LNG, which started in March 2016, suffered its first shutdown just two weeks after shipping its maiden cargo. The terminal is also partly owned by Exxon Mobil and Shell.

Recommended for you

More from Energy Voice

Latest Posts