No impact on Gorgon LNG output from CCS limits: Chevron

Chevron said there will be no impact on LNG production at its 15.6mn t/yr Gorgon LNG offshore Western Australia (WA) following conditions imposed on the amount of carbon dioxide (CO2) it can inject into its carbon capture and storage (CCS) facility because of current technical issues.

The technical issues associated with the CCS facility, which was designed to store between 3mn-4mn t of CO2 each year, comes as Chevron is also dealing with technical problems at Gorgon LNG associated with weld defects on propane exchangers. These first emerged in July last year during routine maintenance on Gorgon LNG's train two, with train one currently having maintenance to repair the problem.

The WA Department of Mines, Industry Regulation and Safety (DMIRS) has approved a six-month extension for Chevron to continue CO2 injections, while the pressure management system is brought back on line to be fully operational by 30 June 2021. This is the fourth conditional approval granted since injections started in August 2019.

DMIRS conditional approval for Chevron to operate the CO2 injection system without the pressure management system currently being fully operational is subject to conditions, including reducing the limit for CO2 injection rates, along with specified additional monitoring and reporting requirements, DMIRS said. The DMIRS did not say the limits it has imposed on CO2 injections compared with the 3mn-4mn t/yr capacity.

Chevron has injected more than 4mn t of CO2 since it started in August 2019. "We continue to work closely with the regulator to optimise the system," Chevron said. "This requires some short-term changes to our operating limits until the system's pressure management is operational, expected in the first half of 2021."

The pressure management system withdraws water from the reservoir that is part of the CCS facility to creates more space for higher volumes of CO2 injection storage over time. Chevron is considering adjusting the pressure management system through the installation of additional technology during January-June 2021 to improve the system's performance.

Australian upstream firms have cited CCS as key technology to achieve their objectives of cutting greenhouse gas emissions.

By Kevin Morrison