Chevron’s Australian LNG Workers to Commence Industrial Action: What It Means for the Global LNG Market

Chevron’s Australian LNG facilities are bracing for industrial action starting September 7, following an unresolved dispute over employee pay and conditions. The move has already impacted global LNG prices and could lead to further market volatility.

Unions Announce Industrial Action at Chevron’s Australian LNG Facilities

Unions representing employees at Chevron’s two significant LNG complexes in Australia have confirmed that industrial action will commence on September 7. The decision comes amid ongoing disagreements over pay and working conditions.

The Global Impact: Surge in Natural Gas Prices

The announcement has already sent ripples through the global LNG market, causing a surge in European natural gas prices. These facilities contribute to over 5% of the world’s LNG production capacity, making any disruption a matter of global concern.

Chevron’s Response and Future Plans

Chevron has acknowledged the employees’ right to take protected industrial action and assures that steps are being taken to maintain safe and reliable operations. The company is backed by the Offshore Alliance, which includes the Maritime Union of Australia and the Australian Workers’ Union.

The Nature of the Planned Action

The industrial action could vary from short work stoppages to full-on strikes. Insiders reveal that the initial plan is for a three-hour strike on September 7, with the possibility of increasing the duration in the future.

A Trend in the Industry?

This development comes after similar disputes were resolved between the Offshore Alliance and Woodside Energy Group, another major player in the Australian LNG market. However, negotiations with Chevron have yet to yield similar outcomes.

Stay tuned to NDT Inspect for more updates on this developing story and its impact on the global LNG market.