Safety and production fears at Chevron’s Gorgon LNG plant with cracks found in processing trains
Energy giant Chevron has discovered hundreds of cracks in processing trains at its $US54bn WA Gorgon LNG plant.
Energy giant Chevron has discovered hundreds of cracks up to a metre long within processing trains at its $US54bn Gorgon LNG plant in Western Australia, raising safety fears and potentially hitting production on Australia’s second-largest gas export facility.
Cracks up to 1 metre long and 30 millimetres deep on between eight and 11 pressurised propane “kettles” or heat exchangers on Train 2 have been discovered during scheduled maintenance with the gas processing unit expected to be out of service for a further two months.
The Gorgon facility, which houses three LNG trains with a combined capacity of 15.6m tonnes of LNG, could face an extended shutdown and loss of production if the problems found in Train 2 are replicated in the other two facilities.
WA’s Department of Mines, Industry Regulation and Safety said it will conduct a joint dangerous goods and WorkSafe inspection of the LNG plant as soon as possible and noted legislation allows it to hand down enforcement measures to ensure operators meet their obligations.
“The Department of Mines, Industry Regulation and Safety is aware Chevron Australia discovered issues with propane kettles at its Gorgon LNG plant during routine maintenance and understands the company is investigating,” the department’s director of Dangerous Goods and Petroleum Safety, Steve Emery said in a statement.
“While DMIRS does not have any immediate concerns for worker safety, the department is taking the matter seriously and is in discussion with Chevron about the findings from its maintenance inspections and the assessment of the results to date.”
“The department‘s discussions with Chevron included a review of the actions it has taken to ensure the integrity of the LNG plant’s other trains, and the actions taken to ensure worker safety.”
Chevron should immediately shut down the Gorgon project for safety inspections by the government regulator, the Australian Manufacturing Workers’ Union said on Wednesday.
“We’re hearing from workers that they’re fearful for their safety and are reluctant to even go out to the blast-proof wall. We share their fears,” AMWU State Secretary Steve McCartney said. “Chevron needs to put workers’ safety first and shutdown for an independent investigation. If something goes wrong, it would be catastrophic.”
The project 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.
Over 800 people are currently on the Gorgon site at Barrow Island - located 85 kilometres 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 said.
“The reports we’re hearing of over eight kettles being damaged represents a serious failure in this critical piece of kit,” Mr McCartney said.
“If multiple kettles are showing cracks in testing on Train 2, there is a high risk there are cracks in the vessels on other trains. if these cracks are in the vessels, they cannot be fixed, and they need to be replaced immediately.”
“These kettles are carrying pressurised propane, and the trains are lined up next to each other on the plate.”
Chevron said maintenance continues to take place on the kettle issue on Train 2.
“Inspections are ongoing on the Gorgon LNG Train 2 propane heat exchangers. The relevant regulatory bodies have been informed,” a Chevron spokeswoman said. “Gorgon’s first turnaround last year helped strengthen our capabilities and provided many insights we are currently applying to increase safety and efficiency and enhance plant performance.”
Chevron is expected to detail more on Gorgon operations and production at its quarterly update on July 31.
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 the slump in crude prices.
Chevron, which also operates the Wheatstone LNG plant in WA, said 20-30 per cent of its 2000-strong workforce could be axed indicating up to 600 job cuts.
The energy operator in June kickstarted one of the biggest shake-ups in the state’s LNG sector for decades after indicating it would sell its 16.7 per cent stake in the $34bn North West Shelf plant, operated by rival Woodside Petroleum.
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