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Australia's Gorgon LNG Train 1 resumes operations: Chevron

Sydney (Platts)--5 Jan 2017 421 am EST/921 GMT


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

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

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

The $54 billion project, from which the first LNG cargo from its Barrow Island location departed on March 21, 2016, has suffered various production issues.

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

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

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

The spokesman for Chevron declined to comment on how much production was lost due to the outage and whether it resulted in any declaration of force majeure.

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 expected to 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 once all 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




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