The Offshore Alliance union in Australia has extended its rolling 24-hour stoppages at Chevron’s liquefied natural gas (LNG) plants for a second day, raising concerns about global supply. According to an unnamed representative from the Offshore Alliance, an additional 24-hour stoppage has been implemented across all three facilities, with 15 percent of Downstream members participating in rolling stoppages and bans.
The strike is set to continue until 8am on Monday (00:00 GMT), and further decisions regarding full-day strikes will be made during daily meetings. Workers at the Wheatstone and Gorgon LNG facilities, which contribute to over 5 percent of global supply, initiated their campaign last week. The strike involves limiting operational activities such as equipment restart, mooring and loading tankers and other vessels, and laboratory analysis work.
In response to the strike, Chevron has appealed to Australia’s industrial tribunal to intervene and cancel the stoppages. The tribunal is expected to hold a hearing on the matter next week, with a decision soon to follow.
Chevron’s facilities are currently operated by non-union workers, with approximately 500 union members working at the Gorgon and Wheatstone plants. The potential reduction in gas exports from one of the world’s largest suppliers has led to an increase in global prices, as seasonal demand in the northern hemisphere intensifies the competition for LNG. Gas futures at the TTF hub in the Netherlands surged by 12 percent on Friday when the strike began.
The impact of the strike on global supply and prices has garnered attention in the energy industry. This development comes at a time when gas prices in the European Union are already surging. As a result, market participants are closely monitoring the situation.
Additionally, the strike highlights the ongoing labor disputes and tensions between unions and companies in the energy sector. Such conflicts can have significant repercussions on the operations and profitability of major players in the industry, as well as on the supply and pricing of essential commodities.
The outcome of the industrial tribunal’s hearing and its subsequent decision will be crucial in determining the future course of action for both the union and Chevron. If the strikes are not canceled, the potential disruptions to supply could further impact global gas prices and deepen the challenges faced by market players and consumers alike.
It is essential for all stakeholders, including the union, the company, and the industrial tribunal, to engage in open and constructive dialogue to find a mutually beneficial resolution that takes into account the interests of both workers and the broader energy market. Striking a balance between fair labor practices and the efficient functioning of critical infrastructure is key to ensuring stability and sustainability in the energy sector. Continued disruptions and uncertainties in the LNG market can have wide-ranging implications that extend beyond the boundaries of any one country or region.
For those interested in staying informed about developments in the economy and finance sectors, RT’s business section offers a range of articles and updates that provide insights into the latest trends and events shaping global markets. It is crucial for market participants to stay updated and well-informed to effectively navigate the dynamic and ever-changing landscape of the business world.