INTERNATIONALNEWSTRENDING

Cyclone Disruption in Australia Deepens Global LNG Supply Concerns

A powerful storm sweeping across Western Australia has forced major gas facilities offline, hitting output at some of the country’s biggest liquefied natural gas projects and tightening an already strained global supply.

Operations at key plants run by Chevron and Woodside Energy were disrupted after Tropical Cyclone Narelle made landfall, adding fresh pressure to energy markets already unsettled by tensions in the Middle East.

The situation is particularly significant as Australia has recently risen to become one of the world’s top LNG exporters, especially after production setbacks in Qatar and shipping disruptions around the Strait of Hormuz.

Chevron confirmed outages at its Gorgon and Wheatstone facilities – two of the country’s largest LNG operations – likely linked to the cyclone. Meanwhile, Woodside reported interruptions at its Karratha gas plant, a critical part of the long-running North West Shelf project.

Analysts estimate the storm could impact over 30 million tonnes of Australia’s LNG output annually. Combined with ongoing supply shocks from the Middle East, this means more than a quarter of global LNG supply is currently affected, raising concerns for energy markets in Europe and Asia.

Chevron said production would resume once conditions are safe, noting that offshore staff had been evacuated ahead of the storm, with some operations temporarily managed remotely from Perth. Woodside also indicated it would restart operations once workers can safely return to its facilities.

While some projects, including those run by Inpex, reported no damage, others faced temporary shutdowns. Authorities in Western Australia are still assessing the full extent of the cyclone’s impact, which is expected to be significant.

With global energy supply already under pressure, the disruption in Australia could further tighten gas availability if production does not return quickly.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button