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

Seatrium Maintains $12.8B Order Book on Renewables and FPSO Progress

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

Seatrium Secures ABS Backing for Deepwater FPSO Design

DOF Secures Moorings Hook-Up Job in Asia Pacific

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

CNOOC Finds Oil and Gas in South China Sea

Santos and QatarEnergy Agree Mid-Term LNG Supply

Current News

Seatrium Maintains $12.8B Order Book on Renewables and FPSO Progress

Petrobras’ New FPSO Sets Sail From South Korea to Brazil's Santos Basin

Eneos Warns on Skyrocketing Costs fo Offshore Wind

Mooreast to Assess Feasibility of Floating Renewables Push in Timor-Leste

Malaysia Issues First Offshore CCS Permit to Petronas Subsidiary

Sponsored: Record Deals and Record Attendance Underscore ADIPEC’s Global Impact

Sponsored: Energy and Finance Chiefs Call for Sound Policy, Stable Frameworks at ADIPEC

Sponsored: Energy Sector Urged to Scale AI Adoption at ADIPEC

Sponsored: Policy, AI, and Capital Take Center Stage at ADIPEC 2025

Major Oil and Gas Projects Drive Strong OSV Demand in the Middle East

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