Chevron's Wheatstone LNG Facility Resumes Full Production in Australia
Posted 18/09/2023 11:33
Chevron announced on Monday that full production has resumed at its Wheatstone liquefied natural gas (LNG) facility in Western Australia after a recent fault led to a 20% reduction in production. The Wheatstone facility, along with the nearby Gorgon facility, accounts for more than 5% of global LNG supply. Despite the fault and ongoing strikes by workers, scheduled LNG deliveries remained unaffected. LNG production continued at approximately 80% of normal rates during the fault, and vessel loading proceeded without issues.
Tanker Asia Excellence loaded an LNG cargo over the weekend at Wheatstone and is en route to Japan, while tanker Maran Gas Psara is currently loading at Gorgon, according to shipping data. Chevron had previously stated its commitment to maintaining LNG supplies from the Wheatstone facility during the disruptions. The strikes, initially involving brief halts and limited bans on specific tasks, escalated to 24-hour stoppages over the weekend.
The Offshore Alliance, a coalition of two unions, indicated its intention to extend the industrial action, with notices of work stoppages submitted until October 14. Discussions between Chevron and the unions were scheduled to take place with mediation by the Fair Work Commission, though a union representative expressed doubts about reaching a positive outcome. Earlier talks this month ended without an agreement.
On Friday, Australia's industrial tribunal, the Fair Work Commission, is set to hear from Chevron and the unions in an attempt to resolve the dispute over wages and conditions. A ruling is expected soon after the hearing.
Australia currently holds the position of the world's largest exporter of liquefied natural gas, with China and Japan as its top customers, followed by South Korea and Taiwan. The Wheatstone facility has an export capacity of 8.9 million tonnes per year, while the Gorgon facility has an export capacity of 15.6 million tonnes per year.
