Chevron Corp said on Monday it has restarted liquefied natural gas (LNG) production at Train 2 of its Gorgon LNG plant in Western Australia after completing repairs.
Train 2 at Australia's second-largest LNG plant has been shut since May for maintenance, which was extended after cracks were found in the production unit's propane kettles.
The resumption at Gorgon's Train 2 comes after Asian spot prices for LNG slipped last week as supply from Malaysia returned after a brief hiccup. Gorgon's outage has partly helped LNG prices recover from all-time lows seen in May. [LNG/]
"LNG production from Train 2 has safely recommenced," Chevron's spokesman said in an email, adding that weld quality issues in propane heat exchangers were discovered on Train 2 in July during scheduled maintenance.
"Insights gained from Train 2 repairs will contribute to more efficient inspections and potential repairs on Trains 1 and 3, with preparations underway for shutting down Train 1 for inspections," the spokesman said.
The length of the shutdown would be determined by what is discovered during inspections, he said, adding that Train 3 would undergo a similar process after works on Train 1 are completed.
The Gorgon plant produces 15.6 million tonnes of LNG annually, or about 4.5% of global LNG trade in 2019.
The company is operator and 47.3% owner of Gorgon. Exxon Mobil Corp and Royal Dutch Shell Group own 25% stake each, with the rest held by Japan's Osaka Gas, Tokyo Gas and JERA,.
(Reporting by Jessica Jaganathan, writing by Florence Tan; Editing by Himani Sarkar and Rashmi Aich)
