Tropical Cyclone Disrupts LNG Production in Australia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Production Disruption: Tropical Cyclone Narelle has severely disrupted production at Chevron (CVX) and Woodside (WDS)'s two largest liquefied natural gas (LNG) plants in Australia, potentially exacerbating the global energy market's supply crisis.
- Facility Overview: Chevron's Gorgon facility is Australia's largest LNG export facility, producing 15.6 million metric tons annually, while the Wheatstone facility produces 8.9 million tons per year, together accounting for approximately 6.5% of global LNG supply and nearly half of Western Australia's domestic gas supply.
- Restoration Plans: Chevron has stated that it is working to restore production at its Gorgon and Wheatstone facilities, while Woodside confirmed that production at its Karratha gas plant has been disrupted, with plans to resume once workers can be sent back offshore.
- Market Impact: The production outages could place additional pressure on Asian economies reliant on energy imports, particularly as the ongoing Middle East war has already disrupted the LNG supply chain and driven prices higher.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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