Impact of Tropical Cyclone Narelle on Australia’s LNG Production

Tropical Cyclone Narelle, which made landfall in Western Australia on March 26, has significantly disrupted operations at major liquefied natural gas (LNG) plants operated by Chevron and Woodside. Initially crossing the coast as a category four cyclone on March 20, Narelle weakened as it moved inland but continued to affect production at key facilities, exacerbating a global LNG supply crunch linked to ongoing geopolitical tensions in the Middle East.

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Chevron operates the Gorgon and Wheatstone gas facilities, which are among Australia's largest LNG export sites. Gorgon has a production capacity of 15.6 million metric tons per year, while Wheatstone can produce 8.9 million tons. Woodside's Karratha gas plant, part of the North West Shelf project, also faced interruptions due to the cyclone. Both companies are working to restore full production as conditions improve.

The Straits Times

• March 20: Narelle makes landfall as a category four tropical cyclone.

The Straits Times

• March 26: The cyclone impacts Western Australia, leading to production outages at Chevron and Woodside facilities.

The Straits Times

• March 28: The Port of Dampier reopens, though general cargo operations remain suspended due to significant damage.

The Straits Times

The cyclone caused wind gusts exceeding 250 km/h in some areas, particularly affecting the coastal town of Exmouth. Reports indicate widespread damage, including power outages and structural destruction in affected communities. The Port of Dampier, crucial for LNG exports, experienced significant asset damage, limiting operations.

Cyclone Narelle weakens but hazards remain: ‘Too late to leave’

Chevron confirmed that severe weather caused interruptions at both the Gorgon and Wheatstone facilities, stating, “We will resume full production at both facilities once it is safe to do so.” Woodside noted that production at the North West Shelf Project would recommence once they could mobilize their workforce to offshore facilities. Prime Minister Anthony Albanese acknowledged the ongoing danger posed by Narelle, emphasizing the federal government's readiness to assist in recovery efforts.

The Straits Times

Residents in storm-affected areas have expressed concerns about the recovery process and the adequacy of emergency responses. Emergency Management Minister Kristy McBain highlighted the extensive power outages and ongoing risks from fallen trees and debris, urging residents to remain cautious despite the cyclone's weakening.

Cyclone Narelle weakens but hazards remain: ‘Too late to leave’

While reports indicate that Narelle has weakened to a tropical low, emergency warnings remain in place for certain regions, suggesting that the storm's impacts are still being felt. Discrepancies exist regarding the extent of damage and recovery timelines, with some areas reporting significant destruction while others have resumed operations.

Cyclone Narelle weakens but hazards remain: ‘Too late to leave’

As Narelle continues to weaken, authorities are focused on assessing damage and restoring services in affected areas. Monitoring of weather conditions will remain critical as the cyclone's remnants could still pose risks of heavy rainfall and flash flooding in various regions of Western Australia.

Cyclone Narelle weakens but hazards remain: ‘Too late to leave’