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GLNG AUSTRAL ASIA GLNG
Chevron describes the
$54bn Gorgon project
as the largest single-
resource development
in Australia’s history.
Chevron aims for restart of
Gorgon Train 2 by September
PROJECTS & SUPER-MAJOR Chevron said this week that will depend on the findings of the Australian
COMPANIES it anticipates restarting the second liquefaction Department of Mines, Industry Regulation and
train at Western Australia’s Gorgon LNG termi- Safety’s (DMIRS) inspectors.
nal in early September after completing repairs The spokesman told Reuters that Trains 1
that are currently underway. and 3 were in service and that Chevron was still
This comes after a routine inspection of the delivering the LNG it is contractually committed
train’s propane heat exchangers during planned to sell, as well as domestic natural gas.
maintenance that began on May 23 found weld The extended shutdown may actually be wel-
quality issues. Media have reported various comed by the market, as it is expected to boost
sources as claiming that cracks – potentially spot LNG prices in Asia, which remain at sea-
numbering in the thousands – were discovered sonal lows but rose to a nearly four-month high Chevron
in the equipment. According to the Australian in recent days.
Financial Review, Chevron has sought to assuage Chevron describes the $54bn Gorgon pro- has sought
Australian Manufacturing Workers Union fears ject as the largest single-resource development
that the cracks may not be reparable, insisting in Australia’s history. Production from the pro- to assuage
that it can fix them without needing to replace ject began in 2016 and averaged 2.3bn cubic feet
the heat exchangers. Train 2 has eight propane (65mn cubic metres) of gas and 6,000 barrels of Australian
heat exchangers altogether. condensate in 2019. The liquefaction plant has Manufacturing
The union has responded to claims that some a capacity of 15.6mn tonnes per year (tpy), and
of the cracks are up to 39mm – saying that if they a carbon capture and storage (CCS) facility – Workers Union
are that deep, they cannot be repaired and the one of the largest in the world – also started up
heat exchangers, which were manufactured in at Gorgon in 2019, albeit more than two years fears that the
South Korea, would need to be replaced alto- behind schedule.
gether. The claims have prompted state and Chevron holds a controlling 47.3% inter- cracks may not
federal officials to plan their own inspections of est in Gorgon. ExxonMobil and Royal Dutch be reparable.
Gorgon Train 2. Chevron, for its part, has said Shell each own 25% stakes in the project, and
it is working closely with regulators to carry out Japan’s Osaka Gas, Tokyo Gas and JERA own
the repairs and has appropriate safety measures the remaining share.
in place. Further updates on the Gorgon operations are
The train was initially due to restart on July expected in Chevron’s second-quarter results on
11, and the previously scheduled work is now July 31, when the company is also anticipated to
mechanically complete, according to a Chevron provide more information on its exit from the North
spokesman cited by Reuters. The eventual restart West Shelf project, also in Western Australia.
Week 30 31•July•2020 www. NEWSBASE .com P13
