Cooling Water Cleanout Shutdown

LNG train 2 was shut-down earlier in November for maintenance on the closed circuit water system, which had become fouled since its commissioning in March this year. This fouling had been limiting plant capacity. A window of opportunity was available and taken during the two weeks in November, since the off take requirements during the Initial Supply Period (ISP) allows for the shut-down without any loss of delivery of LNG cargoes. Additionally, the Company wanted to ensure that there would be no disruption to LNG cargo deliveries in 2000 due to capacity constraints and unscheduled shut-downs.

On opening up the cooling water system extensive fouling and exchange tube blockage has been observed. The extent of fouling and associated corrosion was found to be much greater than expected and the heat exchangers have proven very difficult to mechanically clean with conventional equipment.

Consequently, more sophisticated specialist equipment has been procured and is now being successfully used on site. It is anticipated that this specialist cleaning programme will take 2 to 3 weeks to ensure that the water cooled exchangers are thoroughly cleaned. At the same time an improved water treatment programme is planned in order to improve the performance and reliability of the cooling water system and to facilitate continued LNG production as per the delivery programme.

On the present plans and schedule of the shutdown, it is expected that the LNG train will re-commence production by 15^th December, 1999.

Management
November 11, 1999