Strike Threatens Global LNG Supply
Workers at two major natural gas operations in Australia run by Chevron are planning a two-week strike starting on September 14, according to Offshore Alliance, a partnership between two local unions.
The strike will follow a week of other forms of industrial action, including work bans and shorter stoppages set to occur from Thursday, Offshore Alliance announced on Tuesday.
The labor dispute between energy companies and their employees in Australia is having far-reaching effects on global gas markets. The potential for walkouts has raised concerns about a sudden decrease in Australia’s liquefied natural gas (LNG) exports. Australia is currently the second-largest exporter of LNG, trailing only Qatar.
The Chevron operations account for approximately 7% of the world’s LNG supply, according to Wood Mackenzie, a leading commodities research and consulting firm.
Chevron in Australia was unavailable for immediate comment, according to a company spokesperson.
Union and company representatives are currently engaging in talks before Australia’s Fair Work Commission, the nation’s workplace arbiter, in an effort to resolve the dispute, Offshore Alliance confirmed. The dispute between the US energy giant and union officials centers around several key issues, including job security, rosters, and wages.
“Our members want to reach an agreement that reflects industry standards,” stated Offshore Alliance spokesperson Brad Gandy. “This is not an unreasonable request and could be achieved overnight if Chevron is willing.”
Industry analysts suggest that disruptions to production at these sites could lead to increased competition for spot LNG cargoes. As a result, some shipments typically bound for Europe, including those from the US, are likely to be redirected to Asia.
