media statement

LNG Production at Gorgon Temporarily Halted

Mechanical Issues Delay Ramp-Up, First Cargo Delivered

Perth, Western Australia, April 6, 2016 – Chevron Australia Pty Ltd today advised that liquefied natural gas (LNG) production at the Gorgon Project on Barrow Island off the northwest coast of Western Australia has been temporarily halted due to mechanical issues with the propane refrigerant circuit on Train 1 at the plant site.

Start-up of Train 1 and associated infrastructure is well advanced with first LNG production achieved on March 7 and production peaking at nearly 90,000 barrels of oil equivalent per day. The first LNG cargo departed Barrow Island on March 21 and has been delivered to Chubu Electric Power in Japan today.

The propane refrigerant circuit is a closed system used to cool natural gas supplied to the plant. Work necessary to complete the repairs is ongoing while the site team continues equipment inspection and assessment. Based on initial findings, the repair work is of a routine nature and all the necessary equipment and material is available on site. A restart of the plant within 30-60 days is estimated at this time.

Train 1 ramp-up to full capacity is still expected to occur over 6 to 8 months from initial start-up of the facility. Meanwhile, construction activities continue to progress on LNG Trains 2 and 3 with timing not affected by the work on Train 1.

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

Chevron is one of the world’s leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of thousands of workers, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; operates Australia’s largest onshore oilfield on Barrow Island, is a significant investor in exploration offshore Australia and provides operational support to exploration assets operated by its affiliates in New Zealand.

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