• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 14 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 46 mins IMO 2020 could create fierce competition for scarce water resources
  • 7 hours Theresa May to Step Down
  • 10 hours IMO2020 To scrub or not to scrub
  • 13 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 6 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 3 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 10 hours Devastating Sanctions: Iran and Venezuela hurting
  • 3 hours Total nonsense in climate debate
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 12 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 8 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
On The Cusp Of War: Why Iran Won’t Fold

On The Cusp Of War: Why Iran Won’t Fold

Iran’s Supreme Leader Ayatollah Khamenei…

After 2 False Starts, Chevron to Relaunch Massive Gorgon LNG Project

LNG Asia

After mechanical shutdowns in the immediate aftermath of its debut shipment of liquefied natural gas (LNG), Chevron is preparing to restart its US$54-billion Gorgon export facility in western Australia.

In April, right after its first shipment of LNG went out, Chevron was forced to shut down the project due to a malfunction of the propane refrigerant circuit.

The company now says that repairs on the first train are complete and the project will be restarted soon, though exports are still weeks away, with Chevron indicating June at the earliest.

Related: The Newest Metric For Gauging Stock Performance In The Oil Patch

"We confirm start-up activities are underway on Gorgon train one with a plan to safely resume production in the coming weeks," a Chevron spokesman told Reuters on Wednesday.

The project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

The giant project will handle 15.6 million-tons-per-year. The first and third cargoes will reportedly go to Chevron, while the second and fourth will go to partners Exxon and Shell, respectively.

Related: Who Will Benefit From The Electrification Of Transport?

Joseph Geagea, executive vice-president, technology and projects, said Chevron expected to reach full production at the first train within six to eight months, with the second and third trains starting six and, respectively, 12 months later. That first estimate is now presumably pushed back by an unknown number of weeks.

Also in May, Chevron said it expected to resume exports from its Angola LNG plant at Soyo after a two-year shutdown. Operations at the 5,2 million t/yr plant were suspended in April 2014, following a safety investigation into a pipeline rupture that caused a hydrocarbon vapor release.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bassam El Wazni on May 21 2016 said:
    It is a very hard time for Chevron. The capital cost of 54 billion US dollar for Gorgon project is very high while the LNG price is at its lowest level. If Gorgon Plant is fully operational, its total revenue at current energy prices will be no more than 4.4 billion US dollars per year.

    Comparing with Inpex's Ichthys project of capital cost of 38 billion US dollar and when it is fully operational at current energy prices, it will generate the same total revenue of about 4.4 billion US dollars per year. Hence the situation of Chevron is nearly twice worse than Inpex at the current energy market.

    Bassam El Wazni

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News