KEY POINTS
- Storm damage shut Chevron’s Wheatstone LNG plant for several weeks, removing about 2.4% of global supply.
- Tropical Cyclone Narelle also disrupted other Western Australia LNG facilities, though some operations are gradually resuming.
- The outage adds to global supply pressure already caused by Middle East tensions and a major Qatar LNG shutdown.
A weeks-long outage at a major Australian liquefied natural gas, LNG, export facility is set to further tighten an already strained global supply market, following recent disruptions in the Middle East and Qatar.
Chevron said storm damage at its Wheatstone gas plant in Western Australia is delaying efforts to restart operations, with full production not expected to resume for several weeks. The facility represented about 2.4% of global trade in February, shipping 11 cargoes, 10 to Japan and one to Thailand, according to advisory firm EnergyQuest.
The disruption came after Tropical Cyclone Narelle affected three plants in Western Australia late last week, curbing output across the region. Woodside Energy Group said it is working to restore normal operations at its North West Shelf facility, while Chevron confirmed that its Gorgon plant has returned to full production after an outage in one of its three processing units.
Supply Pressure Intensifies
The Australian outage adds pressure to global LNG markets already tightened by geopolitical tensions in the Middle East. Supply has been constrained following disruptions around the Strait of Hormuz and the shutdown of Qatar’s largest LNG facility earlier this month.
Much of the affected supply typically serves Asian buyers, who are now scrambling to secure alternative cargoes to offset the shortfall.
Despite the disruptions, Woodside said production continues at its Macedon and Pluto gas facilities. The company also confirmed that ship loading at Pluto LNG is resuming after the reopening of Dampier port, which had been temporarily closed due to the storm.
The combined outages across Australia and the Middle East are expected to keep LNG markets tight in the coming weeks as operators work to restore full capacity.
