Chevron Gorgon LNG export plant still suspended after leak

A jetty at Chevron’s Gorgon LNG export facility. Photo courtesy of Chevron.

 

(Reuters) Production remains suspended at Chevron Corp's $54 B 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."

Gorgon had stored LNG and was still able to export its second ever cargo on July 3 aboard 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 aboard the Asia Excellence tanker.

That vessel is currently anchored around 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.

Gorgon is a joint venture of the Australian subsidiaries of operator Chevron with a 47.3% stake, ExxonMobil and Shell with 25% each, Osaka Gas at 1.25%, Tokyo Gas at 1% and Chubu Electric Power at less than 0.5%.

It will have the capacity to produce 15.6 M tons of LNG per year, after a second and third production line, known as trains, are added in 2017.

 

 

Reporting by Oleg Vukmanovic; Additional reporting by Sonali Paul; editing by Jason Neely

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