Cyclone Narelle Batters Pilbara Gas Infrastructure, Disrupts Operations
Severe Tropical Cyclone Narelle has swept through Western Australia’s resource-rich Pilbara region, leaving a trail of disruptions across major gas projects and port operations. Four of Australia’s largest gas operations, operated by energy giants Santos, Chevron, and Woodside, have reported significant impacts, with critical infrastructure suffering outages. While the cyclone has since been downgraded to a tropical low, the full extent and duration of the disruptions are yet to be determined. Collectively, these affected projects are responsible for nearly two-thirds of Western Australia’s domestic gas supply over the past three months, according to the Australian Energy Market Operator.
Port Operations Grind to a Halt
The Pilbara Ports Authority has confirmed substantial asset damage within its general cargo precinct in Dampier. As a result, all general cargo import operations have been suspended. Chief executive Samuel McSkimming described the impact as “unusual” in its severity, noting that mining supplies, containerised freight, and chemicals have all been affected. Encouragingly, fuel imports and iron ore and LNG exports have not been impacted. However, McSkimming cautioned that a “substantial impact on operations” is anticipated, and a timeline for the resumption of services remains uncertain.
The Port of Ashburton, a key hub for iron ore and liquefied natural gas (LNG) exports situated near Onslow, will remain closed until safety inspections can be conducted. Further closures have been reported at Cape Preston West and Varanus Island ports.
Gas Supply Concerns Amidst Global Energy Woes
The timing of these disruptions is particularly concerning, as global energy markets brace for potential LNG shortages amidst the ongoing conflict in the Middle East. Independent gas analyst Jeanette Roberts highlighted the significance of the situation, stating, “It’s certainly bad timing from that point of view.” She added that the “impact of the triple whammy” – referring to the cyclone, ongoing global energy insecurity, and existing cost of living pressures – could prove “really quite significant.”
Facilities Still Offline After Cyclone’s Fury
Ex-tropical Cyclone Narelle intensified to a Category Four strength before carving a destructive path through much of Australia’s vital energy infrastructure. Gale-force winds lashed islands off the Pilbara coast, with gusts reaching approximately 159 kilometres per hour on Barrow Island, home to Chevron’s flagship Gorgon gas facilities.
Chevron is currently working to restore production at both its Gorgon and Wheatstone projects. The Wheatstone project experienced an offshore platform outage, leading to the suspension of LNG and domestic gas production, as the platform supplies feed gas to the onshore facilities near Onslow. Additionally, one of the three LNG production trains at Chevron’s Gorgon gas facility also suffered an outage.
Woodside reported a “production interruption” at its Karratha Gas Plant, which processes gas from the company’s substantial North West Shelf project. The company anticipates production will recommence once its workforce can be safely mobilised to its offshore facilities.
Santos’s gas facility on Varanus Island, located 75 kilometres off the Pilbara coast, experienced a plant trip due to winds reaching 180 kilometres per hour. Operations are expected to return to normal once weather conditions permit safe re-entry for personnel.
Cautious Optimism Amidst Significant Disruption
Energy and climate journalist Peter Milne described the situation as “a big deal” but advised against undue panic. He explained that the resumption of operations would depend on how quickly weather conditions improve, allowing for offshore inspections and the reactivation of facilities. “The unknown is how long that will take,” Milne noted. He reassured that reserves within the Dampier-Bunbury gas pipeline and underground storage facilities would provide a buffer, particularly for the Southwest’s power mix, with the government expected to ensure this supply remains uninterrupted.
Lessons from Past Disruptions
Ms Roberts pointed to past incidents, such as the 2008 Varanus Island explosion, which resulted in a two-month shutdown of almost a third of the state’s domestic gas supply. That event had widespread repercussions, impacting major industrial users like BHP and Rio Tinto, as well as approximately 150 small businesses.
Gas-fired power plants in WA’s south have been monitoring the situation. RATCH Australia, which operates the Kemerton power station near Bunbury, indicated it was not anticipating significant disruptions but remained vigilant.
Government Response and Global Context
While WA Energy Minister Amber Jade Sanderson initially stated she was unaware of the damage, a state government spokesperson later acknowledged the disruptions. The spokesperson confirmed that offshore workforces had been successfully demobilised and that the government was collaborating with the energy companies to ensure a consistent domestic gas supply.
The cyclone’s impact on Australia’s gas infrastructure occurs against a backdrop of heightened global energy insecurity. The conflict in the Middle East has led to the suspension of shipments by major LNG exporter Qatar, further compounding potential supply challenges.
