Chevron repairing heat exchangers at third Gorgon LNG train

Chevron has started repairing heat exchangers at the third Gorgon LNG train in Australia after finding similar issues that closed the plant’s first and second production unit.

To remind, Chevron said in early March it had completed repair works on heat exchangers at the first train of its giant 15.6 mtpa LNG facility on Barrow Island after finding “weld quality issues” that closed the plant’s second production unit.

The US energy giant said then it planned to shut down the facility’s third unit during the second quarter to inspect whether it also needs repairs as the first two trains.

Chevron’s chief financial officer Pierre Breber confirmed on Friday during the company’s quarterly earnings call that the firm had started repair works but also maintenance turnaround at the third Gorgon train.

“We expect that to be completed by the end of this quarter. And then, we’d be operating all three trains in the second half of the year,” Breber told analysts during the call.

He added that Chevron expects turnarounds and downtime, mainly related to the Gorgon third train, to reduce its production by 90,000 barrels of oil equivalent per day in the second quarter.

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

The plant liquefies gas coming from two offshore fields – Gorgon and Jansz-Io.

The first LNG cargo departed Barrow Island in March 2016 followed by gas supply to the domestic market in December.

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

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

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