At both facilities, which account for more than five percent of global LNG supplies, unions are now preparing for a full-scale strike. Australia is the largest exporter of LNG in the world.
Hundreds of workers at the two facilities began what have been brief strikes on Friday last week, as five days of negotiations over wages and working conditions ended without agreement. The union said that without a deal, strikes would escalate from Thursday and they planned to stop work completely for two weeks.
Chevron said on Monday it saw no reasonable prospect of a deal. It will therefore ask the Australian arbitrator, the Fair Work Commission, to declare a state of intractable bargaining. If this is recognized, it will be possible to end the strike.
Austria’s payments for Russian gas were described by a Brussels official as “blood money”. The European Commission distanced itself from him
A Chevron spokesman told Reuters that both facilities were still operating. However, he refused to give further details.
The case will be a landmark test of new laws introduced in June that empower an arbitrator to force parties to an agreement they are unable to reach on their own.
With the union set to begin full-scale strikes on Thursday, it is unlikely that the arbitrator will have time to hear arguments and make a decision before then. The first hearing is scheduled for Tuesday at 15:00 local time (07:00 CEST) in Melbourne and will deal only with administrative matters.
Even if the strikes escalated, analysts don’t expect production disruptions for several weeks, as both facilities have stockpiles. Some Wheatstone workers also offered to work during the strike to keep domestic supplies running. The problems with the deliveries would only become apparent after a few weeks.
Strikes at Australian LNG plants push up gas price
2023-09-11 12:10:44
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