Page 12 - GLNG Week 44 2020

GLNG COMMENTARY GLNG

Chevron is in the
process of restoring
Train 2 at Gorgon to
service, and will then
inspect the other trains
for similar issues.

LNG project – in which ExxonMobil also owns a Fiona Sammels, who was giving evidence at an
25% stake, once again illustrating the prolific role unfair dismissal hearing in October, the com-
of super-majors in the LNG industry – remains pany was having roster difficulties. This was
offline. However, Chevron said in its third-quar- attributed to employees reporting in sick and
ter earnings call that weld repairs and testing on having to quarantine owing to border arrange-
the train had been completed. ments related to the coronavirus (COVID-19)
“The weld repairs are complete. We verified pandemic.
them with non-destructive testing,” Chevron’s Thus far, Parabellum has kept enough emer-
chief financial officer, Pierre Breber, said on the gency staff on Barrow Island for this not to be
company’s earnings call. “We’ve also completed an issue. But if Gorgon is forced to shut down,
pressure testing of the kettle. So we’re now in the while it would be a blow to Chevron and its part-
process of getting back online. So we’ve started ners, any additional outages may be welcomed
the recommissioning process from the turna- by competitors. The LNG market continues
round and the extended turnaround. The next to struggle to absorb oversupply, and while
steps are to dry out the systems, and then we’ll demand and spot prices are picking up as tem-
begin to cool down.” peratures drop in the Northern Hemisphere,
Chevron anticipates that LNG production additional outages could help.
at Train 2 will resume in the second half of Further outages at Gorgon would come as Chevron’s
November, having previously been targeting another blow to Chevron, however. Train 2 at
October for bringing it back online. the plant has been offline since May, having ini- challenges at
The super-major then anticipates taking tially been taken out of service for maintenance Gorgon illustrate
Train 1 offline to inspect its propane kettles for before the weld quality issues on the kettles were
similar weld quality issues shortly after Train 2 is discovered. Trains 1 and 3 are not anticipated to the complexity
back in service. A similar approach will be taken have the same issues, though this will be con-
with Train 3 after Train 1 is back online follow- firmed once they go offline again for further of LNG export
ing inspections and – if necessary – repairs. inspections.
But Australian media warned last week that Chevron’s challenges at Gorgon illustrate megaprojects.
Gorgon was vulnerable to staffing issues at the the complexity of LNG export megaprojects,
company contracted to provide essential fire- which on occasion can be plagued by technical
fighting and emergency services on Barrow issues. Indeed, it appears that Chevron had a
Island, where the plant is located. This was lucky escape, given that when the weld quality
attributed to Western Australia’s border restric- issues at Train 2 were first reported, the Austral-
tions, and a human resources manager at the ian Manufacturing Workers’ Union (AMWU)
company, Parabellum International, warned raised the risk that repairs would be insufficient
that these staffing issues threatened to shut Gor- and that the kettles would need to be replaced
gon down. altogether. Chevron appears to have avoided
The island is legally required to have a certain this, though this will only be confirmed once
number of emergency services officers. Accord- it inspects the remaining two trains, as well as
ing to a Parabellum human resources manager, restoring Train 2 to operation.™

P12 www. NEWSBASE .com Week 44 06•November•2020