Gorgon LNG in need of repairs after one shipment

The newly productive Gorgon LNG plant is facing a two month shutdown due to technical problems, mere weeks after Chevron’s first and only shipment of gas from Barrow Island.

A statement from Chevron said the shutdown was estimated to take between 30 to 60 days, in order to repair the propane refrigeration unit, but would not discuss the likely cost.

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

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

The West Australian reported insiders estimated the repairs to cost at least $200 million, up to as much as $500 million.

It is expected the repairs will not hinder construction of Trains 2 and 3, which will be started up at six-month intervals.

The repair bill represents an additional cost blowout to the already $US54 billion project, originally costed at $US37 billion and going on six years in construction.

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