Tropical cyclone causes LNG production suspensions in Western Australia

Tropical Cyclone Narelle has forced major energy companies to suspend operations at key liquefied natural gas (LNG) facilities in Western Australia. Chevron Australia announced the temporary shutdown of its Gorgon and Wheatstone plants, which account for approximately 5% of global LNG supply. Simultaneously, Woodside Energy ceased production at its Karratha gas plant due to safety concerns related to the storm. Together, these companies operate facilities responsible for over 15% of global LNG exports. These disruptions occur amid existing global energy market volatility exacerbated by conflicts in the Middle East. Reports note that supply constraints in the Middle East have affected transit through the Strait of Hormuz, impacting Qatari exports. Consequently, LNG prices in specific Asian markets have reportedly doubled following recent geopolitical tensions. Companies are currently working to restore operations as conditions permit.