Exploration & Production

Climate risks rising for Aussie gas, LNG operators

Rising temperatures and an increase in the severity of storms, droughts and floods will increase the difficulties for Australian gas and LNG producers in the years ahead Rising temperatures and an increase in the severity of storms, droughts and floods will increase the difficulties for Australian gas and LNG producers in the years ahead.
By Sally Bogle 7 February 2019 0 33910
A drilling rig in Australia’s Cooper Basin. (Beach Energy)

The key issue: Chevron has reported lower-than-expected output from its Gorgon LNG facility on Western Australia’s Barrow Island because of shutdowns associated with record-breaking temperatures, which have neared 50C at times.

Interfax analysis: LNG exporters and gas explorers are likely to face rising operational challenges and costs as Australia becomes more exposed to the impacts of climate change.

Australia has recently experienced some of the most extreme weather events ever recorded in the country, even though it is not an...