Cyclone Hits Australian LNG Facilities, Further Disrupting Global Supplies

Australia's cyclone Narelle has caused disruptions to liquefied natural gas production at several major facilities, further straining global supplies. The storm, a category four system with wind gusts of up to 250 kilometers per hour, affected Karratha, the onshore processing facility that feeds Woodside Energy Group Ltd.'s North West Shelf export plant in Western Australia.

According to Woodside's spokesperson, production at North West Shelf was interrupted due to severe Tropical Cyclone Narelle. Chevron Corp. also reported a stoppage of one of its three production units at the Gorgon plant and a platform that feeds its Wheatstone facility, as well as domestic gas production.

LNG spot prices in Asia have risen more than 90% since the US and Israel first struck Iran, with most of this supply going to Asian buyers who are struggling to offset the shortfalls. Josh Runciman, lead analyst for Australian gas at the Institute for Energy Economics and Financial Analysis, said the temporary shut-ins come at a 'precarious time' in the global LNG market.