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July 3, 2016

Chevron halts production at $54bn Gorgon LNG facility in offshore Australia

Chevron has suspended production following a gas leak at its $54bn Gorgon liquefied natural gas (LNG) facility on Barrow Island off Australia's north-west coast.

Gorgon

Chevron has suspended production following a gas leak at its $54bn Gorgon liquefied natural gas (LNG) facility on Barrow Island off Australia’s north-west coast.

The company evacuated all workers and plans to repair the low-pressure flare system and acid-gas removal unit prior to resuming production.

Exxon Mobil and Royal Dutch Shell partly own the terminal, which still plans to load an LNG cargo in the coming days.

In April, Chevron closed the Gorgon project due to mechanical issues with the propane refrigerant circuit on train one at the plant site.

Gorgon is a joint venture between the Australian subsidiaries of operator Chevron with a 47.3% stake, while ExxonMobil and Shell each own a 25% stake. Osaka Gas holds 1.25%, Tokyo Gas owns 1% and Chubu Electric Power holds 0.417% interest.

"The Gorgon project has a total production capacity of approximately 2.6 billion cubic feet of natural gas."

The Gorgon project has a total production capacity of approximately 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate a day.

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The project receives gas from the Gorgon and Jansz-Io gas fields, which are located within the Greater Gorgon area between 130km and 220km off the north-west coast of Western Australia.

It also has a 15.6Mtpa LNG plant on Barrow Island, a carbon dioxide injection project, as well as a domestic gas plant that has the capacity to supply 300TJ of gas per day to Western Australia.

First LNG production from the Gorgon project was achieved in March.


Image: Gorgon project has a natural gas production capacity of around 2.6 billion cubic feet. Photo: courtesy of Chevron Corporation.

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