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UPDATE 1-Chevron resumes operation at Gorgon LNG train 1 after month-long outage

Published 04/01/2017, 04:17 pm
Updated 04/01/2017, 04:20 pm
UPDATE 1-Chevron resumes operation at Gorgon LNG train 1 after month-long outage
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* Gorgon LNG train 1 resumes operation - spokesman

* Asian spot LNG prices at near 2-year high (Adds details, context)

By Mark Tay

SINGAPORE, Jan 4 (Reuters) - Chevron Corp (NYSE:CVX) CVX.N said on Wednesday it has resumed production of liquefied natural gas (LNG) at one of its two units at the $54 billion Gorgon project, located off Western Australia, after an outage of slightly more than a month.

"Gorgon LNG Train 1 operation resumed earlier this week," a spokesman for Chevron wrote in an emailed statement. "Production was halted in late November 2016 to assess and address some performance variations," the statement said, without disclosing details of the "variations".

Output at the plant's train 2 production line was unaffected during the period, the spokesman said. The Gorgon project had continued to produce and load cargoes, he said.

The massive Gorgon project has been plagued by a string of operational issues since it started up in March 2016. the continued production form the second train, the supply disruption led to an urgent demand for replacement cargoes to fulfil customer commitments, according to traders familiar with the matter.

That helped spot LNG prices for delivery to North Asia LNG-AS rise to near two-year highs of $9.50 per million British thermal units (mmBtu) last week, their highest level since early 2015, compared with spot levels around $7/mmBtu before news of the Gorgon train 1 outage broke in late November.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ MAP: LNG tankers approaching and leaving Chevron's LNG export facility

http://tmsnrt.rs/2i8APJj INTERACTIVE MAP: LNG tankers in vicinity of Gorgon

reuters://REALTIME/verb=Interactive%20Map/context=%3CNavigation%3E%3CEntities%3E%3CEntity%20type= 'archive'%3E%3CIMap%3EegIAAB+LCAAAAAAABACNkstuwjAQRfeV+g+W98XkBU 3lWKoioUalXUD6oDuLDChqYkd2gsSi/95JAJHQLth45Dt3xsdj80TVYOS6znfwIi uyA2NzrSLqUMFR6JZUmi3UX1qXIuBsKJzzMbStyCfWOv7ImUydsX/vUbKK6J3rjY Jw4rqO71LCBP8wsno0ulGZSE0DnPUEPpd7pDhGku4riOibBTPPbY1USygAebUSfJ HEIv5Jl1NvHAZeGDgeZ63GWc+UZAiWb/K25+0NIT2BKFmCreQaT8A6Sg5lkEWU/m l8LsM2/S2iso51iJxK9Q3mHayFwiJ3rNUm3zZGHrAOida60LpGzBpKsoiXEZ09eE /0Qkj6bDNZWOjmOPA8X+F5vcKz+t/DWhOGS3B2cbHTLNjpHVn3j9jwp4lfoRahJ3 oCAAA=%3C/IMap%3E%3C/Entity%3E%3C/Entities%3E%3C/Navigation%3E

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