Risk of gas shortages as Chevron’s warns cyclone-damaged Wheatstone gas project out of action for weeks

One of WA’s biggest gas producers, Chevron’s Wheatstone project off Onslow, could takes weeks to resume full production because of damage inflicted by cyclone Narelle. As WA’s gas producers redeploy staff to offshore operations disrupted by Narelle, Chevron disclosed yesterday that while its Gorgon LNG project is back in full production, Wheatstone’s restart will be delayed by weeks because of repairs needed to its offshore platform. The shutdown raises the risk of temporary supply shortfalls in WA’s domestic market that would likely be borne by industrial customers. “The Wheatstone gas facility near Onslow has had equipment damage from the severe weather which has impacted restart activities,” Chevron said. “While damage assessments continue at both the onshore Wheatstone plant and offshore Wheatstone platform, it is likely to be a number of weeks before production returns to full rates to allow time for repairs to be safely completed.” Wheatstone produces 8.9 million tonnes a year of LNG for export and 230 terajoules a day for WA customers, accounting for up to 20 per cent of the domestic market. Wheatstone, Woodside’s North West Shelf and Santos’ Varanus gas plants were all knocked offline by Narelle, along with one of Gorgon’s three production trains on Barrow Island. The Gorgon train resumed production on Sunday, but there is still no word from Woodside as to when the NW Shelf’s Karratha gas plant will return, despite the WA Gas Bulletin Board suggesting it could resume as early as Monday. Woodside said it had began “remobilising our workforce to some of our offshore facilities and inspections will inform startup processes and timing”. “Production at the North West Shelf project will recommence once it is safe to do so,” it said. With its Macedon and Pluto gas plants still producing, Woodside said it “continues to supply domestic gas to its WA customers from available capacity”, but it gave no indication of the production volumes. “Woodside remains committed to supporting WA’s energy security through the supply of domestic gas to the state,” it said. The shutdowns have impacted not just domestic gas output but more than 30 million tonnes a year of LNG at a time when the Middle War has jolted the global gas market and sent energy prices soaring. The DomGas Alliance, which represents major customers including Wesfarmers and Alcoa, wasn’t able to provide guidance on the restarts but did confirm that supplies to some industrial customers in the State’s South West had been affected. It used the shutdowns to urge that producers prioritise supply for WA ahead of export markets, where LNG prices have more than doubled since the US and Israel launched its attacks on Iran four weeks ago. “This is a timely reminder of the critical role of the domestic gas reservation policy,” it said. “The State Government and producers must uphold the policy to ensure WA gas works for WA.” The Gas Bulletin Board, which is operated by the Australian Energy Market Operator and informed by the producers, was on Sunday guiding to Varanus Island resuming production on Wednesday. Australia’s production of LNG — it was the world’s third biggest producer coming into 2026 — has become more valuable as the Middle East war has closed the Strait of Hormuz to most shipping and shuttered the world’s largest LNG plant in Qatar. The conflict has also forced Asian companies that depend on Middle East LNG to shift course. Japan on Sunday announced it would allow less-efficient coal plants back into its capacity market auctions to compensate for the loss of LNG shipments. South Korea is also considering using more coal power if deliveries of LNG are disrupted. The two countries are the biggest buyers of Australian LNG.