Chevron (CVX) to Restart Gorgon Project Train 3 Post Testing
In the coming weeks, Chevron Corporation CVX intends to reopen Train 3 at its Gorgon liquefied natural gas plant in Australia, which remains halted since April for maintenance and weld checks.
The maintenance and weld testing decision was taken after welding glitches were detected on the propane heating exchangers of trains 1 and 2 at the time of a planned checking. Notably, repair work on the flawed propane kettles was already complete till reports last came in. All three trains were built at the same fabrication yard in South Korea with the first two coming online in 2016 while the Train 3 commenced operations in 2017.
While Chevron is the chief operator of Gorgon LNG project holding 47.3% stake, Exxon Mobil Corporation XOM and Royal Dutch Shell plc RDS.A own 25% interest each. The remainder is held by Osaka Gas, Tokyo Gas and Chubu Electric Power.
Gorgon LNG project is the largest single resource endeavor in Australia, dealing with the delivery of natural gas to international and domestic customers. Valued at $69 billion, it is one of the costliest energy projects, employing more than 10,000 people to construct the processing facility at Barrow Island. The Gorgon LNG project boasts a shipment capacity worth 15.6 million metric tons per year.
Further, the company expects to perform maintenance at its Wheatstone LNG facility throughout September during which it will close down more than one production train. Wheatstone project is an endeavor, jointly run by Chevron (operator, 64.14%), Woodside (13%), KUFPEC (13.4%), PE Wheatstone (partly-owned by JERA, 8%) and Kyushu Electric Power Company (1.46%). It strengthens the company's role as a leading natural gas supplier and an LNG operator in the Asia-Pacific region, particularly in conjunction with the Gorgon Project.
Brief on the Company
Chevron is one of the largest publicly-traded oil and gas companies in the world with operations spread to almost every corner of the globe. A component of the Dow Jones Industrial Average, this energy player is a fully-integrated company, participating in every energy-related process, ranging from oil production to refining and marketing.
Zacks Rank & Key Pick
Chevron currently has a Zacks Rank #3 (Hold). A better-ranked player in the energy space is SilverBow Resources Inc SBOW, presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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