Three Australian liquefied natural gas (LNG) facilities, contributing approximately 8% of global supply, have faced production disruptions due to Tropical Cyclone Narelle, further complicating the situation for primarily Asian buyers already impacted by halted shipments from Qatar. Woodside Energy Group Ltd. reported outages at its North West Shelf facility, while Chevron Corp. confirmed stoppages at its Gorgon plant and a related Wheatstone platform. These disruptions come at a critical juncture as the global LNG market grapples with decreased supply following the recent attacks in Iran, which affected Qatar’s liquefaction operations.
Analyst Josh Runciman noted that these temporary production halts in Australia arrive at a particularly challenging time for buyers seeking replacements for Qatar’s supply. As a result, LNG spot prices are expected to rise, causing further challenges for buyers who are already facing heightened costs. Since the U.S. and Israel began conflict with Iran, LNG prices in Asia have surged by over 90%, placing additional strain on the market.
The cyclone’s impact has led to evacuations of offshore crews and temporarily halted operations at several facilities, including Gorgon and Wheatstone, while production continues at the Macedon and Pluto plants. Meanwhile, Santos Ltd. reported similar interruptions at its Varanus Island processing facility, which caters to major West Australian industrial clients. The cyclone, currently a category four storm, poses continued risks as it moves along the coast, potentially affecting more LNG operations.
