Australia's North West Shelf LNG Facility Hit by Karratha Plant Outage

Reuters, June 29, 2017

Work to restart production at Australia's Woodside-operated Karratha Gas Plant, which hosts the North West Shelf liquefied natural gas (LNG) export project, is underway following a partial outage on June 24, a spokeswoman said. The spokeswoman declined to say whether there had been an impact on LNG exports. Industry sources said the outage had affected LNG exports and this was supporting spot LNG prices in Asia LNG-AS, which have been on a downward trend for months. The project spokeswoman said Karratha Gas Plant had experienced "a partial production outage" on Saturday afternoon.

"The site was mustered in accordance with our standard procedures and all personnel have returned to work as normal," she added.

The cause of the incident is being investigated.

North West Shelf supplies Asian markets with around 16.3 million tonnes of LNG each year from five processing plants, known as trains. The outage affected exports from trains 2, 3 and 5, two trading sources said. Train 5 had resumed output already while trains 2 and 3 are in the process of being restarted, they said. The last time exports ground to a halt was in mid-April following another unplanned outage. The six stakeholders in the LNG plant are BHP Billiton , BP, Chevron, Japan Australia LNG, Shell and Woodside, which operates the plant.

(Reporting by Oleg Vukmanovic and Mark Tay; Editing by Louise Heavens and Edmund Blair)


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