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Chevron says Gorgon LNG export plant still suspended after leak

Tue, 12th Jul 2016 10:59

By Oleg Vukmanovic

MILAN, July 12 (Reuters) - Production remains suspended atChevron Corp's $54 billion liquefied natural gas (LNG)Gorgon export facility in Australia following a gas leak nearlytwo weeks ago, a company spokesman said.

After the shutdown on July 1, Chevron initially saidproduction would recommence in the "coming week."

"Production at the Gorgon LNG plant site has beentemporarily suspended while the company undertakes some minorrepair and maintenance work," said spokesman Bradley Haynes.

Gorgon had stored LNG and was still able to export itssecond ever cargo on July 3 aboard the Marib Spirit tanker, butthere have been no exports since.

"Gorgon finally shipped its second cargo at the start ofJuly on the Marib Spirit (under term charter to Shell). Fourother ships are scheduled," Australian energy advisory firmEnergyQuest said in a monthly LNG report.

According to a shipping schedule published by ChevronAustralia prior to the leak, Gorgon was due to export anothercargo on July 9-11 aboard the Asia Excellence tanker.

That vessel is currently anchored around 100 kilometres (62miles) off Gorgon, according to shipping data, along with theAsia Endeavour, another of Gorgon's project vessels.

The world's most expensive LNG project shut down in Aprildue to technical problems shortly after exporting its firstcargo.

Gorgon is a joint venture of the Australian subsidiaries ofoperator Chevron with a 47.3 percent stake, ExxonMobil and Shell with 25 percent each, Osaka Gas at1.25 percent, Tokyo Gas at 1 percent and Chubu ElectricPower at less than 0.5 percent.

It will have the capacity to produce 15.6 million tonnes ofLNG per year, after a second and third production line, known astrains, are added in 2017.

"Construction activities are continuing on Gorgon Train 2and 3," Haynes said.

(Additional reporting by Sonali Paul in Melbourne; editing byJason Neely)

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