Australian LNG Projects Brace For Further Delays

18 Nov 2014: Timing schedules for the startup of several greenfield LNG projects in Australia continue to shift, with major ventures like Gorgon, Wheatstone and Ichthys all facing delays beyond what their sponsors have so far announced. This could postpone the wave of Aussie-based supply that buyers are counting on to bring relief to tight LNG markets in the latter half of this decade. Leading the expected delays is Chevron’s 15.6 MMt/y Gorgon project, where rumors that the US major will miss its revised target date of first quarter 2015 for initial exports are growing. “There is no way Gorgon will start until the first half of 2016,” one source predicts, adding that Chevron has begun disseminating news of potential delays to its offtakers. The company has also put off expansion plans, reportedly postponing front-end engineering and design on a fourth 5.2 MMt/y train until next year at the earliest. Download here