Chevron's Strike-hit Australia LNG Facility Resumes Full Production

By Renju Jose and Lewis Jackson
Monday, September 18, 2023

Chevron said on Monday full production had resumed at its strike-hit Wheatstone liquefied natural gas (LNG) facility in Western Australia after a fault last week cut production by about one-fifth.

Wheatstone and the nearby Gorgon facility account for over 5% of global LNG supply, and the fault and the strikes did not affect scheduled deliveries, Chevron said, with shipping data on LSEG Eikon also showing exports from Wheatstone were unaffected.

Chevron said on Monday full production had resumed at its strike-hit Wheatstone liquefied natural gas (LNG) facility in Western Australia after a fault last week cut production by about one-fifth.

Wheatstone and the nearby Gorgon facility account for over 5% of global LNG supply, and the fault and the strikes did not affect scheduled deliveries, Chevron said, with shipping data on LSEG Eikon also showing exports from Wheatstone were unaffected.

"During (the fault), LNG continued to be produced at approximately 80% of usual rates, and vessel loading continued," a Chevron spokesperson said in an emailed statement.

"There has been no change to scheduled LNG deliveries. Domestic gas facilities and supply were unaffected."

Tanker Asia Excellence loaded an LNG cargo over the weekend at Wheatstone and is now headed to Japan, while tanker Maran Gas Psara is now loading at Gorgon, the LSEG Eikon data showed.

Chevron had said it would maintain supplies from the major LNG terminal in the face of disruptions, which intensified over the weekend as workers escalated their strike action to 24-hour stoppages from brief halts and limited bans on certain tasks.

The strikes were set to run until the end of this month but the Offshore Alliance, a coalition of two unions, on Saturday flagged their intention to extend the industrial action.

Chevron said on Monday it had received from the union notices of work stoppages until Oct. 14.

Chevron and unions were scheduled to hold further talks mediated by the Fair Work Commission on Monday and Tuesday, according to a union representative who declined to be named and was doubtful of a positive result.

Five days of similar talks earlier in the month ended without a deal.

On Friday, Australia's industrial tribunal, the Fair Work Commission, will hear from Chevron and the unions in a bid to resolve the dispute over wages and conditions, and is expected to deliver its ruling soon after.

Australia is currently the world's biggest exporter of the super-chilled fuel, and China and Japan are its top two customers, followed by South Korea and Taiwan.

Wheatstone has an export capacity of 8.9 million tonnes a year and Gorgon has an export capacity of 15.6 million tonnes a year.

(Reuters - Reporting by Renju Jose and Lewis Jackson in Sydney, and Florence Tan in Singapore; Editing by Lincoln Feast, Miral Fahmy and Sonali Pau)

Categories: LNG Production People & Company News Offshore Australia/NZ

Related Stories

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

ABL to Support Platform Installations, Rig Moves for Chevron in Gulf of Thailand

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

Aesen, DOC JV Targets Subsea Cable Logistics

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

China Starts Production at Major Oil Field in Bohai Sea

Woodside Finds South Korean Partners to Advance LNG Value Chain

Current News

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

ABL to Support Platform Installations, Rig Moves for Chevron in Gulf of Thailand

PTTEP Orders OneSubsea Systems for Two Deepwater Projects off Malaysia

Russia's Lukoil Takes Up Gunvor’s Offer for Foreign Assets

How Hot Is Your Cable? Understanding Subsea Cable Thermal Performance

Sponsored: UAE Breaks Ground on GW-Scale Renewable Energy Hybrid

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

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