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Australia's Gorgon LNG Train 1 resumes operations: Chevron

Highlights

The Gorgon LNG facility in Western Australia resumed production at itsTrain 1 earlier this week after being shut since November last year, aspokesman for operator Chevron said late Wednesday.

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"Gorgon LNG Train 1 operation resumed earlier this week. Production washalted in late November 2016 to assess and address some performancevariations," he said, adding that it was restarted on Monday.

"Train 2 production was unaffected and we continued to produce LNG andload cargoes during this time," he said.

The $54 billion project, from which the first LNG cargo from its BarrowIsland location departed on March 21, 2016, has suffered various productionissues.

It was forced to shut from April to mid-June following the first shipmentdue to a problem with a propane refrigerant circuit.

It was again unexpectedly shut July 1 after a gas leak, which caused adelay to its second shipment.

LNG production at Gorgon totaled 1.98 million mt in 2016, according toprovisional figures from Platts Analytics, which expects output to total 11.95million mt in 2017.

The spokesman for Chevron declined to comment on how much production waslost due to the outage and whether it resulted in any declaration of forcemajeure.

LNG plants typically require six months to ramp up to nameplate capacity. However, each plant is different and some could speed up the process.

Production from Gorgon Train 2 started in October and Train 3 is expectedto come online in the second quarter, S&P Global Platts reported earlier.

The project will have a shipment capacity of 15.6 million mt/year onceall three trains have ramped up to full production, Chevron has said.

Gorgon is a joint venture by Chevron (47.33%), ExxonMobil (25%), Shell(25%), and Japanese utilities Osaka Gas (1.25%), Tokyo Gas (1%) and JERA(0.41%).

--Nathan Richardson, newsdesk@spglobal.com--Edited by E Shailaja Nair, shailaja.nair@spglobal.com