Gas talk planned on inactive backdrop
Prime Minister Malcolm Turnbull is visiting WA’s Gorgon gas project this week to deliver a major speech on resources and change in the liquefied natural gas industry.
Turnbull is expected to outline ideas for the shift from the LNG sector’s labour-intensive construction phase to production.
It should have been great timing, with US energy giant Chevron (operator of the $72.6 billion Gorgon project) announcing production of LNG started last month.
But Chevron was forced to suspend operations just two weeks after they began.
Reports say production was halted due to issues with the propane refrigerant circuit.
Chevron has rushed to start repair work, but it is not expected to resume its operations for at least a month.
Output at the troubled facility is estimated to take six to eight months to reach full capacity.
The suspension of operations is another big challenge for the Chevron and its partners, including Royal Dutch Shell and Exxon Mobil, which have been hit hard by price slumps in the energy sector.