Cyclone Hits Australian LNG Plants, Further Tightening Global Market
A severe cyclone has disrupted liquefied natural gas (LNG) production at several Australian plants, including those operated by Woodside Energy Group Ltd. and Chevron Corp., further straining a global market already affected by supply disruptions from Qatar.
The storm, Tropical Cyclone Narelle, has forced the temporary closure of three major LNG facilities: Karratha, Gorgon, and Wheatstone, which collectively account for about 8% of global trade. The Woodside-operated North West Shelf facility was evacuated due to severe weather associated with the cyclone.
Josh Runciman, lead analyst at the Institute for Energy Economics and Financial Analysis, warned that LNG spot prices are likely to increase as a result of the disruptions, causing further pain for buyers in Asia. The region has already seen prices rise over 90% since the US and Israel struck Iran last month.
Production is expected to resume once workers return after the cyclone passes, but the timing is uncertain. Woodside's Goodwyn A, Angel, and North Rankin platforms are currently offline, while Chevron's Gorgon and Wheatstone operations have been halted due to severe weather conditions.