Gorgon Production Still Suspended

LNG Carrier
Gorgon's first LNG delivery

By MarEx 2016-07-13 19:32:22

Production remains suspended at Chevron Corp's $54 billion LNG Gorgon export facility in Australia following a gas leak nearly two weeks ago, a company spokesman said.

After the shutdown on July 1, Chevron initially said production would recommence in the "coming week."

"Production at the Gorgon LNG plant site has been temporarily suspended while the company undertakes some minor repair and maintenance work," said spokesman Bradley Haynes.

Gorgon had stored LNG and was still able to export its second ever cargo on July 3 on board the Marib Spirit tanker, but there have been no exports since.

"Gorgon finally shipped its second cargo at the start of July on the Marib Spirit (under term charter to Shell). Four other ships are scheduled," Australian energy advisory firm EnergyQuest said in a monthly LNG report.

According to a shipping schedule published by Chevron Australia prior to the leak, Gorgon was due to export another cargo on July 9-11 on board the Asia Excellence tanker.

That vessel is currently anchored around 100 kilometers (62 miles) off Gorgon, according to shipping data, along with the Asia Endeavour, another of Gorgon's project vessels.

The world's most expensive LNG project shut down in April due to technical problems shortly after exporting its first cargo.

The Gorgon Project is supplied from the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 130 kilometers (80 miles) and 220 kilometers (136 miles) off the northwest coast of Western Australia. It includes a 15.6 MTPA LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

Gorgon is a joint venture of the Australian subsidiaries of operator Chevron with a 47.3 percent stake, ExxonMobil and Shell with 25 percent each, Osaka Gas at 1.25 percent, Tokyo Gas at one percent and Chubu Electric Power at less than 0.5 percent.

It will have the capacity to produce 15.6 million tons of LNG per year, after a second and third production train is added in 2017.

"Construction activities are continuing on Gorgon Train 2 and 3," Haynes said.