Production stopped at Gorgon

Gas production at Chevron’s Gorgon project has been put on ice for at least a month just weeks after first gas was exported from the facility, the company announced today.

The halt was due to mechanical issues in the propane refrigerant circuit of Train 1, which the company said was used to cool natural gas supplied to the plant.

“Work necessary to complete the repairs is ongoing while the site team continues equipment inspection and assessment,” a spokesperson said.

“Based on initial findings, the repair work is of a routine nature and all the necessary equipment and material is available on site.”

But it could take up to two months to fix.

It’s the latest setback at the $54 billion project that was originally to begin production in 2014.

There was some good news, however, with the first LNG cargo reaching Japanese buyer Chubu Electric Power Company today.

Chubu holds a 0.4 per cent stake in the project.

“Train 1 ramp-up to full capacity is still expected to occur over six to eight months from initial start-up of the facility,” the spokesperson said.

“Meanwhile, construction activities continue to progress on LNG Trains 2 and 3 with timing not affected by the work on Train 1.”