Chevron’s $54B gorgon Nat gas plant pack up once more

Chevron’s $54B gorgon Nat gas plant pack up once more

Chevron’s $54-billion gorgon liquefied natural gas plant in Australia was shut down for a third time since it launched in March, with sources telling news agencies that the period of time delayed shipments however didn't cause any cancellations.

The shutdown was unplanned and caused by work on the facility’s acid removal unit, per sources cited by Reuters, and was due to be put back on-line days later. However, with Chevron unresponsive to reporters’ inquiries, it remained unclear at the time of writing whether or not gorgon was keep a copy or remained offline.

The project’s acid removal unit additionally created the news in june, once it had been thought to own been the reason for a protracted shutdown following a gas leak.

According to traders cited by Reuters, the newest shutdown didn't cause any cancellations of shipments, however has caused delays of 5 cargoes, that apparently helped to boost LNG spot costs temporarily.

For the third time within the last eight months, production at gorgon has been shut down. In July, the plant was evacuated when a gas leak was detected.

In April, immediately when its first LNG shipment, Chevron had to stop gorgon operations to address a malfunction in a propane refrigerant circuit.

Analysts haven't placed a lot of emphases on the gorgon delays, with Wood Mackenzie noting within the aftermath of the july shutdown that given the project’s $7-billion-annual cash flow generation prospects for several decades, these temporary shut downs are insignificant.

The gorgon plant is that the largest within the history of Australia, and may be a joint venture with ExxonMobil, Shell, Osaka Gas, tokyo Gas and Chubu electric power. The project can handle 15.6 million-tons-per-year.

In the last week of october, Chevron announced that the second of 3 LNG production trains at gorgon was currently running at its full capability of 5 million tonnes of LNG per year (110,000 barrels of oil equivalent per day).