Cyclone Narelle Disrupts Australian LNG Production Amid Global Energy Crisis

Tropical Cyclone Narelle triggered production outages at three major liquefied natural gas facilities in Western Australia on Thursday, March 26, 2026, striking plants operated by Chevron Corporation and Woodside Energy at a moment when global LNG markets are already under severe strain from the ongoing war on Iran. Chevron confirmed that its Gorgon and Wheatstone facilities — which together supply approximately 5% of the world's traded liquefied natural gas — suffered interruptions, while Woodside separately reported a production disruption at its Karratha plant. A Chevron Australia spokesperson said the company was working to restore output and would resume full production at both facilities once conditions allowed. The outages closed several key iron ore and LNG ports across Western Australia as the category 3 system moved along the coast. Australia is one of the world's largest LNG exporters, with Chevron and Woodside Energy together accounting for more than 15% of international natural gas exports. Japan relies on Australia for approximately 40% of its LNG imports, making it particularly exposed to any disruption in Australian output. The global LNG market had already been severely disrupted before Narelle made landfall, as the US-Israel war on Iran, which began on February 28, 2026, effectively closed the Strait of Hormuz and prompted Qatar — the world's second-largest LNG producer — to suspend production.

Wheatstone platform demobilized days before the storm hit The sequence of outages unfolded over the course of a single afternoon. An outage struck the Wheatstone Platform, located approximately 225 kilometers off Australia's west coast, around midday local time on Thursday, causing a suspension of onshore gas production. Chevron said all personnel had been demobilized from the offshore platform ahead of the cyclone and that the facility had been operated remotely from the company's Perth office since Tuesday afternoon. Three hours after the Wheatstone incident, an outage shut down one of three LNG production trains at the Gorgon facility on Barrow Island, roughly 50 kilometers offshore. Chevron said the Gorgon plant was continuing to operate at reduced capacity. Woodside subsequently confirmed that its Karratha plant had also been affected by a production interruption due to the approaching cyclone. The extent to which deliveries would be affected remained unclear at the time of the announcements.

15 (million tons per year) — Gorgon plant maximum annual LNG production capacity

Qatar shutdown and closed Hormuz leave markets with no buffer The timing of the outages compounded an already acute global energy supply crisis. The war launched by the United States and Israel against Iran on February 28, 2026, effectively closed the Strait of Hormuz to tanker traffic, cutting off a critical artery for global energy shipments. Qatar, the world's second-largest LNG producer, suspended production this month as tankers avoided the blocked waterway. LNG prices in parts of Asia have more than doubled since the conflict began at the end of February. Chevron and Woodside Energy together account for more than 15% of international natural gas exports, meaning disruptions to their output carry outsized weight in an already depleted market. Japan, which sources around 40% of its LNG imports from Australia according to the Asia Natural Gas and Energy Association, faces particular exposure to the combined effect of the Middle East conflict and the Australian weather event.

Cyclone Narelle batters WA coast with widespread damage reported Tropical Cyclone Narelle, classified as a category 3 system, caused widespread damage in Exmouth and other communities along Western Australia's north-west coast, according to early reports. The storm had been tracked for several days before making landfall, with forecasters warning it could intensify into a category 5 system at one point. The closure of key LNG and iron ore ports across the region disrupted not only energy exports but also broader commodity shipments from one of Australia's most resource-intensive coastlines. Chevron's decision to demobilize the Wheatstone Platform and shift to remote operations from Perth reflected standard emergency protocols for significant weather events, the company said. The full extent of damage to infrastructure and the timeline for restoring production at all three affected facilities had not been confirmed as of Friday morning. Global energy traders and Asian buyers were monitoring the situation closely given the absence of alternative supply sources capable of compensating for simultaneous outages in Australia and the Gulf region.