* Gorgon LNG train 1 resumes operation - spokesman
* Asian spot LNG prices at near 2-year high
(Adds details, context)
By Mark Tay
SINGAPORE, Jan 4 Chevron Corp said on
Wednesday it has resumed production of liquefied natural gas
(LNG) at one of its two units at the $54 billion Gorgon project,
located off Western Australia, after an outage of slightly more
than a month.
"Gorgon LNG Train 1 operation resumed earlier this week," a
spokesman for Chevron wrote in an emailed statement. "Production
was halted in late November 2016 to assess and address some
performance variations," the statement said, without disclosing
details of the "variations".
Output at the plant's train 2 production line was unaffected
during the period, the spokesman said. The Gorgon project had
continued to produce and load cargoes, he said.
The massive Gorgon project has been plagued by a string of
operational issues since it started up in March 2016.
Despite the continued production form the second train, the
supply disruption led to an urgent demand for replacement
cargoes to fulfil customer commitments, according to traders
familiar with the matter.
That helped spot LNG prices for delivery to North Asia
LNG-AS rise to near two-year highs of $9.50 per million
British thermal units (mmBtu) last week, their highest level
since early 2015, compared with spot levels around $7/mmBtu
before news of the Gorgon train 1 outage broke in late November.
(Reporting by Mark Tay; Editing by Richard Pullin and Kenneth