Australian LNG Hit by Shell, Chevron Outages at Prelude, Gorgon

Sonali Paul
Friday, December 3, 2021

Royal Dutch Shell Plc shut production at its Prelude floating liquefied natural gas (LNG) site and Chevron Corp shut one of three processing units at its Gorgon LNG plant, both off northwestern Australia, the companies said on Friday.

The Gorgon and Prelude outages are expected to boost spot LNG prices, which are up about 20% from a month ago.

Shell said Prelude was hit by a power outage on Thursday after smoke was detected in an electrical utility area, and the facility is operating on back-up diesel generators. Smoke did not spread from the area, and workers on the vessel are all safe, the company said.

"While work is underway to restore main power, production on Prelude has been suspended temporarily," a Shell spokesperson said in an emailed statement.

The company gave no time frame for restoring output or resuming cargo loading at the 3.6 million tonne a year facility.

Chevron shut Train 3 at the 15.6 million tonne a year Gorgon LNG plant on Wednesday, a company spokesperson said. The controlled shutdown on Train 3 came after the company discovered and fixed a minor gas leak on Train 1 last month.

"Following the successful repair and restart of Gorgon LNG Train 1, we have undertaken a controlled shutdown of LNG Train 3 to carry out repairs on piping associated with the dehydration unit," the spokesperson said.

"Production continues from LNG Trains 1 and 2," she said, adding that gas was still being delivered to regional customers and the Western Australian domestic market.

The Gorgon LNG project is co-owned by Exxon Mobil Corp, Shell, and Japanese utilities Osaka Gas, Tokyo Gas, and JERA.

(Reporting by Sonali Paul; Editing by Jacqueline Wong and Rashmi Aich)

Categories: Floating Production FLNG Australia/NZ Offshore LNG

Related Stories

BP Moves Indonesia CCUS Project Into Offshore Installation Phase

ABL Gets Papua New Guinea FSO Job

Hormuz Crossings Decline as US Renews Iran Blockade

Oil Rises 2% as Middle East Hostilities Escalate

James Fisher, Aquaterra Launch Global Decommissioning Partnership

Oil Jumps 3% on Renewed US-Iran Conflict

Hormuz Traffic Falls to Five-Week Low as Tensions Escalate

Qatari LNG Carriers Re-Enter Hormuz as Traffic Through Strait Slumps

Inpex’s Ichthys LNG Strike Persists as Fair Work Hearing Gets Postponed

Eni and Petronas Launch Southeast Asia Gas Joint Venture Searah

Current News

Borr Drilling's Mexican JV Expands Fleet with Five Jack-Ups

Keppel Launches $2.9B Program to Monetize Legacy Offshore Drilling Rigs

Saipem Cuts Earnings Outlook as Middle East Costs Rise

Serica Energy Agrees $194M Pharos Energy Acquisition

Oil Eases After Topping $100, Still Set for Weekly Rise

BP Moves Indonesia CCUS Project Into Offshore Installation Phase

Eni-Petronas JV Starts Indonesia-Bound FPSO Construction

QatarEnergy Prolongs LNG Force Majeure, Charters Out Tankers

Chevron Enlists Velesto’s Jack-Up Rig for Drilling Job off Malaysia

ABL Gets Papua New Guinea FSO Job

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com