Chevron expects “strong” Gorgon LNG performance in 2022, CEO says

US energy giant Chevron is expecting to have “strong” operational performance this year at its 15.5 mtpa Gorgon LNG facility in Western Australia, following several train shutdowns during the last two years.

In July 2021, Chevron completed repairing heat exchangers at the third Gorgon LNG train after it found “weld quality issues” that closed the plant’s first and second trains.

After that, it closed the first train in November due to a “minor” gas leak that occurred on piping associated with the dehydration unit. Chevron restarted this unit during the same month.

In December, the firm said it had closed the third train to carry out repairs on piping associated with the dehydration unit, followed by the second unit in January as well.

No more Gorgon turnarounds

Chevron’s CEO Mike Wirth told analysts during the company’s fourth-quarter earnings call on Friday that the company does not have any planned turnarounds at the Gorgon plant in 2022.

Wirth also explained the situation with the dehydration unit.

“During normal rounds, we had an operator that spotted evidence that we had the risk of an operating issue at one of the units in the dehydration train,” he said.

“Nothing that was catastrophic or alarming but a sharp-eyed operator picked up evidence. So something that as we investigated further, we felt it was prudent to take a quick pitstop to address this,” Wirth said.

“And so that’s been completed at two of the three trains, and they’re all same design. So these things tend to show up across all three trains,” he said.

“Strong” operational performance

Wirth said that the last train was undergoing the pitstop “right now.”

Chevron “is also addressing a problem with one of the compressors that was identified, and this was an opportune time to make a couple of changes with that in order to reduce risk going forward,” he said.

“We’ve done our first major turnaround on all three trains now. Those are behind us at Gorgon,” he said.

“And as we complete this last pitstop that’s underway, our expectation is that we’re going to have strong operational performance this year and see more production out of Gorgon than we did in 2021,” Wirth said.

Chevron’s Gorgon development is one of the world’s largest natural gas projects with a price tag of about $54 billion.

Also, the giant 15.6 mtpa plant liquefies gas coming from two offshore fields – Gorgon and Jansz-Io.

Chevron Australia operates the project with a 47.3 percent share while ExxonMobil and Shell have a 25 percent stake, each.

Japan’s Osaka Gas, Tokyo Gas, and JERA own the remaining stakes in Gorgon.

- Advertisements -

Most Popular

Golden Pass LNG to ramp up construction activities after Zachry deal

QatarEnergy and ExxonMobil will ramp up construction activities at the Golden Pass LNG export terminal in Texas after a...

Tellurian updates on Driftwood LNG work

US LNG terminal developer Tellurian, which is being acquired by Australia's Woodside, released the latest construction update for the...

Hudong-Zhonghua confirms TotalEnergies order for LNG bunkering vessel

China’s Hudong-Zhonghua said it had secured an order to build one 18,600-cbm LNG bunkering vessel for French energy giant...

More News Like This

Chevron resumes Wheatstone LNG production

Chevron’s unit in Australia has resumed production at its 8.9 mtpa Wheatstone LNG terminal near Onslow. “Chevron Australia has resumed...

Chevron says to complete Wheatstone platform repairs in coming weeks

Chevron’s unit in Australia expects to complete repair activities on the Wheatstone offshore platform, which provides gas to the...

Chevron suspends Wheatstone LNG production

Chevron’s unit in Australia has suspended production at its 8.9 mtpa Wheatstone LNG terminal near Onslow to complete a...

Chevron’s Gorgon LNG plant resumes full operations

Chevron Australia, a unit of US energy giant Chevron, has resumed full production at its Gorgon LNG terminal in...