Chevron suspends Gorgon LNG production after gas leak

[SYDNEY] Chevron on Friday suspended production at Australia's Gorgon liquefied natural gas (LNG) export facility after a leak but remained on track to make a second shipment in coming days, it said.

"Chevron Australia plans to undertake some minor repair work on the low pressure flare system at the acid gas removal unit before recommencing production in the coming week," it said in a statement.

"Plans remain on track to load the second cargo of Gorgon LNG in the coming days."

News of the leak was cited as a reason for a boost in Asian LNG prices to the highest level since February.

Workers in the area were evacuated and there were no injuries after responding to what Chevron referred to as a "minor gas leak."

The recently commissioned US$54 billion Gorgon project was briefly shut down in April following technical problems, shortly after starting up first production.

Gorgon is a joint venture of the Australian subsidiaries of operator Chevron with a 47.3 per cent stake, ExxonMobil and Shell with 25 per cent each, Osaka Gas at 1.25 per cent, Tokyo Gas at 1 per cent and Chubu Electric Power at less than 0.5 per cent.

Gorgon will have the capacity to produce 15.6 million tonnes of LNG per year once all three production trains are operating.

REUTERS