Berliner Boersenzeitung - Cyclone triggers outages at major Australian LNG plants

The Gorgon and Wheatstone gas plants in Australia collectively supply more than five percent of the world's liquefied natural gas, according to Chevron figures.

Both suffered outages on Thursday afternoon as Tropical Cyclone Narelle lurked off the coast of Western Australia.

"Chevron Australia is working to restore production at the Gorgon and Wheatstone gas facilities following production outages," Chevron said in a statement.

"We will resume full production at both facilities once it is safe to do so."

The Gorgon gas plant -- which is the larger of the two -- was continuing to operate at a reduced capacity, Chevron said.

It was not immediately clear to what extent supply might be impacted.

Tropical Cyclone Narelle was inching towards the coast of Western Australia on Friday morning, according to the government Bureau of Meteorology.

The category four system was forecast to bring "destructive wind gusts and heavy rainfall" to some coastal areas, the bureau said.

A sprawling industrial complex sitting just off Australia's western coast, the Gorgon plant is capable of pumping out more than 15 million metric tonnes of gas each year.

At full capacity, the smaller Wheatstone project produces almost nine million metric tonnes.

- Major disruptions -

Australia is one of the world's largest LNG exporters -- and is a particularly crucial supplier to import-reliant northern Asia.

Some 40 percent of Japan's LNG comes from Australia, according to the Asia Natural Gas and Energy Association.

The US-Israel war on Iran has caused major disruptions to global supplies of both oil and LNG.

Qatar, the world's second-largest LNG producer, has seen LNG exports plunge as fuel tankers steer clear of the Strait of Hormuz.

LNG prices in some parts of Asia have more than doubled.

Chevron is one of two major natural gas producers in Western Australia, alongside Woodside Energy.

Between them, the two companies account for more than 15 percent of international natural gas exports.

With LNG profits set to soar on the back of the Middle East crisis, Australia is reportedly mulling a new windfall tax on fuel exporters.

(S.G.Stein--BBZ)