OPERATIONS

Gorgon production ramps up again

CHEVRON Corporation’s troubled Gorgon LNG plant on Barrow Island is expected to achieve full production within the next fortnight, an analysis of vessel-tracking data suggests.

Gorgon production ramps up again

Paris-based energy market watching firm Kpler suggests that Gorgon is about to load its sixth and seventh cargoes since the restart of Train 1 on January 4.
 
Its tracking data shows the Chevron-owned Asia Energy and the Tokyo Gas/NYK-owned Energy Confidence on course for the Barrow Island terminal
 
They have a combined capacity of some 300,000cu.m.
 
Train 1 stopped production in November due to "variations in performance". 
 
The train started up in March 2016, but suffered a number of operational issues, including one gas leak, which have continued to cause issues at the $US54 billion development.
 
Train 2 has largely operated without major teething issues, and enabled the troubled project on Barrow Island to continue loading cargoes unaffected.
 
Train 2 started production in October 2016. 
 
Train 3 is being targeted for a mid-year start-up. Plans for Train 4 and Train 5 remain in limbo.
 
Gorgon is believed to be the most expensive LNG export project in the world.
 
When the Carnarvon Basin assets are in full production it should produce around 15MMtpa from the Io-Janz fields, offshore Western Australia
 
Asian spot LNG prices are trading at more robust levels, and are now near a two-year high, at close to $9.50 per million British thermal units, having risen from $7/MMBtu in November. 
 
Chevron owns 47.3% of Gorgon, with ExxonMobil (25%) and Shell (25%). A number of Japanese gas buyers, including Osaka Gas and JERA, own the balance. 
 
The Energy International Agency expects Australia to add 23.2MMtpa of new production capacity this year as Train 3, Wheatstone and Prelude FLNG start-up.
 
Ichthys, in the Browse Basin, is expected to start up early in 2018.

 

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