Cyclone Narelle disrupts Australia’s LNG and gas production amid global energy shortages
Consensus Summary
Cyclone Narelle has disrupted major liquefied natural gas (LNG) and gas production facilities in Western Australia’s Pilbara region, exacerbating global energy supply concerns. Chevron’s Gorgon and Wheatstone plants, along with Woodside’s Karratha Gas Plant and Santos’ Varanus Island facility, were knocked offline due to extreme winds and evacuations, collectively accounting for nearly two-thirds of WA’s domestic gas supply. The closures follow global LNG shortages caused by Iran’s blockade of the Strait of Hormuz and missile strikes on Qatar’s Ras Laffan facility, which supplies 17% of Qatar’s LNG output. WA Energy Minister Amber-Jade Sanderson reassured that domestic gas supply remains stable, emphasizing operators’ preparedness for cyclones, though ABC noted initial confusion over reported damage. The UAE’s Das Island facility, a critical LNG exporter to China and India, also faced disruptions after missile attacks. While both sources agree on the severity of the outages, ABC highlights historical precedents like the 2008 Varanus Island explosion, which caused prolonged supply issues, while NEWSCOMAU focuses on the immediate impact of Cyclone Narelle and pre-existing upgrades at some facilities.
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Key details reported by multiple sources:
- Cyclone Narelle caused outages at Chevron’s Gorgon and Wheatstone LNG plants in Western Australia’s Pilbara region, with Wheatstone going offline around midday Thursday and Gorgon experiencing a partial outage around 3pm Thursday
- Chevron evacuated offshore workers from Wheatstone (225km offshore) and Barrow Island (50km offshore) facilities by Tuesday and Thursday respectively, operating remotely thereafter
- Santos’ LNG plant on Varanus Island (75km offshore) was knocked offline by Cyclone Narelle, with winds reaching 180 km/h early Thursday evening
- Woodside’s Karratha Gas Plant suffered a production interruption, contributing to the shutdown of nearly two-thirds of WA’s domestic gas supply over the past three months
- WA Energy Minister Amber-Jade Sanderson stated that domestic gas supply remains uninterrupted and that operators are well prepared for cyclones, with no reports of damage to date
- The closures coincide with global LNG supply disruptions due to Iran’s closure of the Strait of Hormuz and missile strikes on QatarEnergy’s Ras Laffan facility (17% of Qatar’s LNG output)
- The UAE’s Das Island LNG export facility (30% of China’s LNG imports and 53% of India’s) experienced partial resumption after a missile attack, with no alternative route out of the Persian Gulf
Points of Difference
Details reported by only one source:
- Chevron’s Wheatstone and Gorgon plants were knocked offline Thursday, with Barrow Island facility suffering a partial outage a few hours after Wheatstone
- Santos’ LNG plant in Darwin was already offline for upgrades before Cyclone Narelle hit
- Cyclone Narelle passed Chevron’s gas fields near Coral Bay (1000km north of Perth) around midday Friday
- QatarEnergy’s Ras Laffan gas facility was struck by Iranian missiles last week, halting all of Qatar’s LNG exports
- Four major gas facilities (Chevron’s Gorgon, Wheatstone, Woodside’s Karratha, and Santos’ Varanus Island) account for almost two-thirds of WA’s domestic gas supply over the past three months
- Gale-force winds on Barrow Island peaked at 159 km/h, while Varanus Island experienced winds of 180 km/h early Thursday evening
- Woodside’s Karratha Gas Plant is linked to the North West Shelf project, with production expected to resume after workforce mobilization
- WA Energy Minister Amber-Jade Sanderson initially stated at a press conference she was unaware of damage, later acknowledging evacuations of offshore workforces
- Ex-Tropical Cyclone Narelle intensified to category four strength on Thursday before being downgraded to a tropical low
- In 2008, an explosion on Varanus Island (then owned by Apache Energy) shut down nearly a third of WA’s domestic gas supply for two months, impacting BHP, Rio, Burrup Fertilisers, and 150 small businesses
Contradictions
Conflicting information between sources:
- NEWSCOMAU states Santos’ Darwin LNG plant was offline for upgrades before the cyclone, while ABC does not mention this pre-existing outage
- ABC reports WA Energy Minister Amber-Jade Sanderson initially claimed she was unaware of damage at a press conference, but NEWSCOMAU does not mention this contradiction
- NEWSCOMAU says the UAE’s Das Island LNG facility partially resumed production on Tuesday after a missile attack, while ABC does not specify this timeline
- ABC states the four facilities account for almost two-thirds of WA’s domestic gas supply over the past three months, but NEWSCOMAU does not quantify this proportion
- NEWSCOMAU reports the Wheatstone platform was operated remotely from Perth since Tuesday, while ABC does not specify this exact timeline for remote operations
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