Chevron delays Gorgon LNG production again with further setback
Extra welding needed to bring the unit back to production following the discovery in July of major cracks.
Chevron has suffered a further blow after being forced to delay the resumption of LNG production at its giant $US54bn ($74bn) Gorgon project in Western Australia with extra welding needed to bring the unit back to production following the discovery in July of major cracks.
Cracks up to 1m long and 30mm deep on between eight and 11 pressurised propane “kettles”, or heat exchangers, on Train 2 of Gorgon were discovered during scheduled maintenance.
The US energy major, which also operates WA’s Wheatstone LNG plant and is selling its stake in the North West Shelf gas facility, had planned to bring Train 2 back in September but will now take an extra month to complete the work.
“Chevron expects the repairs to the heat exchangers, where weld-quality issues were discovered during scheduled maintenance in July, to be completed and to restart production at Train 2 next month,” Chevron said in a statement on Thursday.
“Following our ongoing technical work, we are further refining our approach and have decided some welds in targeted areas will require additional work.”
Chevron had previously flagged there may be more problems with cracks, saying the company could be forced to reinspect the first of three production trains in light of cracking found at the facility.
WA’s Department of Mines, Industry Regulation and Safety said on August 21 that Chevron had agreed to shut down Train 1 for inspection in early October and Train 3 in January. However, the delay in returning Train 2 back into operation may change that timeline.
“We have discussed our plans with the regulator and will maintain alignment on its requirements for inspections and repairs on the Gorgon heat exchangers and the sequencing of work on Gorgon Trains 1 and 3. Insights gained from the Train 2 repairs will contribute to more efficient inspections and potential repairs on Trains 1 and 3,” Chevron said.
The Gorgon processing plant houses three LNG trains with a combined capacity of 15.6 million tonnes. There had been fears the entire processing facility could face an extended shutdown and loss of production if the problems found in Train 2 are replicated in the other facilities.
More than 800 people are on the Gorgon site at Barrow Island — located 85km off the Pilbara coast — to carry out maintenance, hiking concern over worker safety.
The kettles were manufactured in South Korea at the same time as those made for the remaining two trains, which continue to produce and export LNG to buyers in Asia, the AMWU has said.
Gorgon is 47 per cent owned by Chevron, the operator, while fellow oil super majors ExxonMobil and Royal Dutch Shell each have a 25 per cent stake.
When it was approved in 2009 it was expected to cost $US37bn and start exporting in 2014. But the complications of building on Barrow’s class-A nature reserve, an overheated construction market, workforce issues and a stronger Australian dollar for most of the construction period all contributed to huge budget blowouts and delays.
The US oil major has endured a tough year with 20 of its staff put in lockdown during March amid COVID-19 testing and in May up to 600 jobs cut due to a “perfect storm” of the pandemic and a slump in crude prices.
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