Chevron starts Gorgon LNG Train 2 production, profits decline

Chevron starts Gorgon LNG Train 2 production, profits decline
Image courtesy of Chevron

Production at the second liquefaction train of Chevron’s Gorgon LNG project has started, according to the company’s chairman and CEO John Watson. 

Commenting on the company’s drop in profits for the third quarter of over 35 percent, Watson said that with the “steady production” and LNG cargo shipments from Gorgon’s first liquefaction train, the Train 2 has started production.

Earlier in August it was reported that the company expects the first LNG from the second train in the early part of the fourth quarter with the third train to come into service in the second quarter of 2017.

The giant $54 billion Gorgon LNG facility on Barrow Island in Western Australia faced two production interruptions in March and July this year, however, production at Train 1 has been back online since end July.

Chevron’s third-quarter profit reached US$1.28 billion, down from $2.03 billion in the corresponding quarter of 2015.

However, Watson said, that “third-quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year.”.

Chevron expects its production in December to be between 2.65-2.70 million barrels per day in oil equivalent.

Watson further added that capital spending and operating expenses have been reduced by over $10 billion from the first nine months of 2015.

 

LNG World News Staff

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