W|EPC: Gorgon LNG – Assessing Potential Operational Contributors To Kettle Cracks, Mid-October A More Likely Restart - Webber Research
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W|EPC: Gorgon LNG – Assessing Potential Operational Contributors To Kettle Cracks, Mid-October A More Likely Restart

August 2020

Total Pages: 7

Table Of Contents

  • Gorgon LNG – Shutdown Update & Analysis 
  • Highlights
  • Executive Summary
  • Gorgon LNG History, Partners
  • Restart Timeline Estimates
  • Analysis – Weld Issues & Chevron’s Response
  • Propane Crack Repairs – Scenario Analysis
  • Remaining Technical Questions
  • Disclosures                                                                                                           

Key Takeaways:

1) Pump The Breaks: While potential fabrication errors have been the primary narrative around the Propane Kettle cracks that shut down Gorgon LNG, it’s feasible that operational issues (and one in particular) may have contributed or even partially caused the cracks on Train-2’s kettles, which could have significant and more complex implications.

2) The propane kettle cracks were noticed ~3-years after the kettles were placed in-service (likely beyond any warranty period), potentially shifting costs to Chevron. According to our in-house engineers, a breakdown in the propane vapor transfer step could subject the propane kettles to temperatures significantly below the minimum design metal temperature; creating stress on the metal and an optimum environment to cause cracks.

3) If the root cause involved an operational issue, it would require not just replacement or repairs, but more robust inspections, testing, and training, which would add to the out-of-service timeline (Pages 2-4).

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