Cyclone Disrupts Australia's Liquefied Gas Supply Amid Global Shortages

Australia's cyclone has caused disruptions to three major liquefied natural gas plants, further exacerbating supply concerns in the global market. The Karratha plant, which feeds Woodside Energy Group Ltd.'s North West Shelf export facility, experienced a production interruption due to Tropical Cyclone Narelle. Meanwhile, Chevron Corp. reported that one of its Gorgon plant's three production units was shut down, along with a platform feeding its Wheatstone facility and domestic gas production.

The disruptions come at a precarious time for the global LNG market, which has been reeling from the closure of Qatar's largest liquefaction plant following an Iranian attack. The Strait of Hormuz's closure has also impacted Asian buyers, who have been looking to offset supply shortfalls and are most affected by Australian disruptions.

LNG spot prices in Asia have surged over 90% since the US and Israel struck Iran at the end of last month, with Gorgon, Wheatstone, and North West Shelf accounting for nearly half of Australia's exports last month - roughly 8.4% of global trade.

Woodside Energy Group Ltd.'s spokesperson stated that production is expected to resume once its offshore workforce returns after evacuation due to cyclone preparations. Chevron Corp. said the severe weather associated with Tropical Cyclone Narelle likely caused the interruptions at Gorgon and Wheatstone operations.