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Restart troubles for

Australian LNG facilities

Attempts to restart Prelude FLNG and the second train at Gorgon
are running into obstacles and taking longer than initially expected

COMMENTARY ATTEMPTS to restart the second train at Gor- super-major discovered cracks in the kettles dur-
gon LNG and the Prelude floating LNG (FLNG) ing routine maintenance on the train that began
facility – liquefaction capacity that has been in May and was subsequently extended to carry
WHAT: offline in Australia – are running into obstacles. out the necessary repairs.
Chevron and Shell The challenges illustrate the complexity of the Chevron had initially anticipated completing
have separately run projects involved, and while operators Chevron the repairs and returning Train 2 to service in
into challenges as and Royal Dutch Shell have sought to downplay September, but now says it expects the facility to
they attempt to bring the setbacks, more issues cannot be ruled out be restarted in October.
liquefaction facilities in before the facilities are back online. The company said that following its ongo-
Australia back online. While the ongoing outages represent a set- ing technical work, it was further refining its
back to the facilities’ operators, however, the approach and had decided that some welds in
WHY: broader industry may welcome them as it targeted areas would require additional work.
More time is needed struggles with the global glut of LNG, which is This comes after the Australian Manufacturing
to bring Gorgon Train 2 still being exacerbated by new capacity coming Workers Union said in July that cracks up to 1
back online, while an online in the US. metre long and 30mm deep were found on 8-11
attempted restart of kettles on Train 2. The trade union raised con-
Prelude is reported to Extra time cerns that the heat exchangers would need to
have failed. On September 3, Chevron Australia said it be replaced altogether, so while the repairs are
would require extra time to complete repairs of more extensive than Chevron initially expected,
WHAT NEXT: propane heat exchangers – or kettles – on Train it appears that this is not the worst-case scenario.
The ongoing outages 2 at the Gorgon terminal on Barrow Island, off However, there has been speculation that
may be welcomed the northwest coast of Western Australia. The welding work on the cracks was initially
by the industry as it
struggles with global LNG
oversupply.

The Gorgon LNG facility in WA.

P12 www. NEWSBASE .com Week 36 10•September•2020