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The encyclopedia · Engineering & Operations · Operational decision · 1998

Esso's Longford gas plant exploded — a restart done without a risk assessment

In 1998, Esso's Longford gas plant in Australia exploded during a cold restart, killing 2. No hazard review was done. Victoria lost gas for weeks.

Esso Australia · ExxonMobil · 1998-09-25

What happened

On September 25, 1998, the Esso Longford gas processing plant in Victoria, Australia, exploded during a cold restart of a gas fractionation unit. The explosion killed two workers and injured eight. The plant supplied the majority of Victoria's natural gas, and the shutdown left homes and businesses without gas for weeks during the approach of winter.

The investigation found that the restart was conducted without a proper hazard assessment. A cold liquid slug entered a heat exchanger that was not designed for the thermal shock, causing it to fracture and release a flammable gas cloud that ignited. The operators had not been trained for the specific restart procedure, and the plant's management had not required a formal risk assessment for the operation.

The Royal Commission found that Esso's safety culture had deteriorated after cost-cutting and staff reductions in the 1990s. In 2001 Esso was fined A$2 million — then the largest occupational safety penalty in Australian history. The case illustrated how cost-cutting can erode the institutional knowledge and safety procedures that prevent routine operations from becoming catastrophes.

Why it happened

  • The cold restart was conducted without a formal hazard assessment or risk review.
  • Operators had not been trained for the specific restart procedure.
  • A cold liquid slug caused thermal shock to a heat exchanger, fracturing it.
  • Esso's safety culture had deteriorated after cost-cutting and staff reductions.
What it cost2 dead; Victoria's gas cut for weeks; A$2M finecatastrophic

The lesson

A routine operation without a risk assessment is unexamined, not routine. The thermal shock that killed two workers was not unforeseeable — it was unassessed.

Aftermath

Esso was fined A$2 million, then Australia's largest occupational safety penalty. The Royal Commission led to reforms in Victoria's occupational health and safety legislation. The case is cited in Australian and international process safety courses as an example of how cost-cutting erodes safety culture.

Sources

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