Chevron says repairs underway at Australia's Gorgon LNG Train 1 after weld quality issues

[SINGAPORE] Chevron Corp said on Monday it is conducting repairs to propane heat exchangers on a production train at its Gorgon liquefied natural gas (LNG) plant in Western Australia after the US oil major found weld quality issues during inspections.

Train 1 at Australia's second-largest LNG plant was shut for planned maintenance when the issues were discovered.

This comes at a time when spot Asian LNG prices LNG-AS are at a record high following a spike in demand during a colder-than-expected winter.

Gorgon LNG plant's Train 2 was shut from May to November. It was initially shut for planned maintenance, which was later extended after cracks were found in the production unit's propane kettles. Weld quality issues in propane heat exchangers had also been discovered on that production train in July during the scheduled maintenance.

"Appropriate safety measures are in place, with insights from Train 2 repairs contributing to a more effective inspection and repair program," a Chevron spokeswoman told Reuters.

Trains 2 and 3 remain operational and the company will continue to deliver LNG to customers and gas to the Western Australian domestic market, she said, without giving a timeline on how long the repairs on Train 1 could take.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Train 3 would undergo a similar process after maintenance work on Train 1 is completed.

The three-train Chevron-operated Gorgon plant produces 15.6 million tonnes of LNG annually, or about 4.5 per cent of global LNG trade in 2019.

Chevron's Australian subsidiary holds a controlling 47.3 per cent in Gorgon. Exxon Mobil Corp and Royal Dutch Shell each have 25 per cent, and the rest is held by Japan's Osaka Gas, Tokyo Gas and JERA.

REUTERS