Chevron’s Australian LNG Plant Resumes Full Output Amid Strikes

By Bloomberg

Sep 18, 2023

image is BloomburgMedia_S15OZIT0AFB501_18-09-2023_05-51-00_638305920000000000.jpg

The Chevron Corp. logo in front of One The Esplanade office tower, which houses the company's office, in Perth, Australia, on Thursday, Sept. 14, 2023. Liquefied natural gas workers at key Chevron sites in Western Australia have begun ramping up a campaign of industrial action in a dispute that has roiled global energy markets. Photographer: Philip Gostelow/Bloomberg

(Bloomberg) -- Chevron Corp. resumed full production from a liquefied natural gas export facility in Australia that suffered a fault last week, even as union members continue strikes at the site.

Scheduled LNG deliveries from the Wheatstone gas facility were not impacted by a fault that occurred on Sept. 14 and domestic supply was also unaffected, the company said Monday in a statement. “During this time LNG continued to be produced at approximately 80% of usual rates, and vessel loading continued,” a spokesperson said.

The restart indicates Chevron is able to keep exporting fuel despite an escalation in industrial action to 24-hour walkouts at key facilities in Australia over the weekend. Chevron is using some non-unionized workers to operate its projects.

A prospect of lower gas exports from one of the world’s biggest suppliers has sent global prices higher, as it threatens greater competition for LNG during peak demand in the northern hemisphere winter. Chevron’s Wheatstone and Gorgon plants, where workers are currently striking, exported about 7% of global LNG supply last year.

Wheatstone’s LNG production returned to normal operation on Sunday night, Chevron said.

By Stephen Stapczynski