Chevron’s Australian LNG Plant Outage Adds to Global Supply Woes

(Bloomberg) -- A section of a key liquefied natural gas export facility in Australia halted production Monday, threatening to further tighten global supplies after a pipeline issue in Norway curbed flows in Europe.

Chevron Corp.’s Gorgon liquefied facility halted production on one of its three units, according to people familiar with the matter. The facility had just resumed full production Friday following maintenance on a unit for most of May. 

The potential production slowdown comes as European supplies are at risk following an outage at the huge Nyhamna gas processing plant in Norway, which is a key supplier to Europe. Scarcity concerns led traders on European gas to drive up prices sharply Monday.

Chevron did not immediately respond for comment and it is unknown how long Gorgon production will be halted. 

Chevron’s facility on Barrow Island has a capacity of 15.6 million metric tons of LNG a year. Other shareholders include Exxon Mobil Corp. and Shell Plc. 

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