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

CNOOC Finds Oil and Gas in South China Sea

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Yinson Production Closes $1B Investment to Drive Further Growth

Wood JV Gets EPC Job for Shell off Brunei

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Current News

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

China Rolls Out 17MW Floating Wind Turbine Prototype

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

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