18 Sep 2023 | 01:43 UTC

Australia's Wheatstone LNG resumes full production after fault at plant: Chevron

Highlights

Nochange to scheduled Wheatstone LNG deliveries

Domestic gas facilities and supply were unaffected

Japanese buyers lift 83% of Wheatstone LNG output

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Chevron Australia has resumed full production at the company-operated Wheatstone Gas Facility following a recent fault at the plant that had cut LNG production to 80%, a Chevron spokesperson told S&P Global Commodity Insights Sept. 18.

"Chevron Australia confirms full production resumed last night (Sept. 17) at the Wheatstone Gas Facility following a fault on Sept. 14," the Chevron spokesperson said.

"During this time, LNG continued to be produced at approximately 80% of usual rates, and vessel loading continued. There has been no change to scheduled LNG deliveries. Domestic gas facilities and supply were unaffected."

Chevron's latest announcement came after it said Sept. 14 that it was working to normalize its Wheatstone gas facility operations after a fault at the plant, which impacted 25% of its LNG production at the time.

Chevron's Wheatstone facility has 8.9 million mt/year LNG production capacity over two trains.

The Sept. 14 news of a fault at the Wheatstone gas facility coincided with an announcement by the unions of a complete stoppage of works at the Gorgon and Wheatstone facilities from 6 am Australian Western Standard Time Sept. 14 (2200 GMT Sept. 13), which could last up to 24 hours a day

S&P Global reported Sept. 13 that sellers of Gorgon and Wheatstone LNG told at least one Japanese buyer that its LNG supply will not be affected by escalating industrial action at the Australian facilities.

The Offshore Alliance started its protected industrial action at the Chevron-operated Gorgon and Wheatstone LNG facilities Sept. 8 and said its members will stop work completely for two weeks from Sept. 14 as part of the PIA.

Japanese buyers are foundational customers for the Gorgon and Wheatstone projects, which are among Australia's largest resource developments. The Gorgon project comprises a three-train, 15.6 million mt/year LNG facility and a domestic gas plant, while the Wheatstone project has a nameplate capacity of 8.9 million mt/year of LNG and a domestic gas plant.

Japanese LNG lifting volumes account for 30% of Gorgon output and 83% of Wheatstone output, according to S&P Global calculations based on industry information.