• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 21 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 22 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 23 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 22 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 21 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 1 day Saudi A to Splash $100 Bln on India
  • 23 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 hours Washington Eyes Crackdown On OPEC
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 20 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Permian Production To Break 4 Million Bpd In March

Permian Production To Break 4 Million Bpd In March

Permian oil production is set…

The End-Game For Libya’s Oil Crescent

The End-Game For Libya’s Oil Crescent

As Libya’s two opposing sides…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

After False Start, Chevron to Resume Gorgon LNG Production

U.S. energy giant Chevron said it expected to resume production at the Gorgon liquefied natural gas (LNG) project off the coast of Western Australia later this month after finishing up repairs that had seen the plant shut down after only it first shipment.

Production at the massive Gorgon project launched just over a month ago after a six-year construction period; however, mechanical problems in the propane refrigerant system has seen production halted right out of the starting gates.

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.

Related: The Merger That Could Create a New Oil Major

"Repairs to this equipment are nearing completion, and we are in the process of reinstating the propane refrigerant circuit. We expect to restart Train 1 in the next few weeks and resume LNG production within the 30 to 60-day estimate we provided previously," Mr Geagea said.

The $54-billion Gorgon Project was constructed on Barrow Island, some 60 kilometers off the northwest coast of Western Australia. 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).

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.

Related: Why China Is Really Dictating the Oil Supply Glut

The US company owns a 36.4 percent stake in Angola LNG, alongside state-owned Sonangol with 22.8 percent, and BP, Total and Italy's Eni with 13.6 percent each. The plant has seven dedicated 160,000m³ vessels — the Cubal, Lobito, Malanje, Soyo, SonangolBenguela, SonangolEtosha and SonangolSambizanga.

The news of a resumption of these shipments comes at an awkward time for Chevron. On Friday, Chevron announced it would be cutting another 1,000 jobs, and posted a first quarter loss of $725 million. With these new cuts, Chevron will have cut a total of 8,000 workers, or 12 percent of its workforce.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bassam El Wazni on May 22 2016 said:
    I doubt that Chevron will be able to restart the plant. Chevron's (Angola) Soyo LNG plant is off line for three years and unable to put it online. Sam Simon wrote that Soyo LNG plant was a small fart but he expected that Gorgon LNG to be the biggest fart in LNG projects history.

    Chevron Should acknowledge that they lack of skills and expertise to operate LNG plants and should hand over the operations of this project to other partners such as Shell or Exxon mobile.

Leave a comment

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