A tropical cyclone has forced shutdowns at two major Australian liquefied natural gas (LNG) facilities, adding pressure to already tight global energy markets amid ongoing disruptions from the Iran conflict.
Chevron-operated plants Gorgon and Wheatstone, which together account for roughly 5% of global LNG production capacity, were forced to reduce output as Cyclone Narelli swept through Western Australia. Production at Wheatstone was halted around noon local time Thursday, while Gorgon experienced a temporary shutdown of one of its three units at approximately 3 p.m., according to company statements.
“These temporary closures were caused by severe weather conditions associated with Cyclone Narelli,” a Chevron Australia spokesperson said.
The outages compound supply disruptions already triggered by halted shipments from Qatar following Iranian attacks and the near-total closure of the Strait of Hormuz. LNG prices have surged more than 90% since late February, reflecting heightened global uncertainty.
“Temporary shutdowns at Australian LNG plants come at the worst possible moment for buyers trying to replace Qatari supplies,” said Josh Rankiman, senior gas analyst at the Institute for Energy Economics and Financial Analysis. “Spot LNG prices are likely to climb further, exacerbating the strain on global buyers.”
The Gorgon project has three production units, each capable of producing 5.3 million tons of LNG annually, while Wheatstone has two units with a combined capacity of 8.9 million tons, in addition to a domestic gas plant. Together, they represent a significant share of the world’s liquefaction capacity.
Energy analysts warn that this dual disruption, natural disasters in Australia and geopolitical tensions in the Middle East, could push global LNG markets into uncharted territory, with buyers scrambling to secure alternative supplies and prices remaining volatile.
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