Workers at Major Australia Gas Facilities to Strike

Workers at two large liquefied natural gas (LNG) plants in Australia are set to go on strike from 7 September, in a move that could drive up global prices.

It follows weeks of negotiations with unions over pay and working conditions.

Chevron, the US energy giant which operates the sites, said it would “continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities”.

Fears of strikes recently pushed up wholesale gas prices in Europe.

The Wheatstone and Gorgon sites produce more than 5% of the world’s LNG and about 500 workers are currently employed at the two plants in Western Australia.

The industrial action will see workers down tools for up to 11 hours a day, according to a strike plan seen by the BBC.

Chevron said in a statement on Tuesday that though

it doesn’t believe that industrial action is necessary for agreement to be reached, they recognize employees have the right to take protected industrial action.

It added that it would “continue to work through the bargaining process as it seeks outcomes that are in the interests of both employees and the company.

The Offshore Alliance – which is a partnership of two unions representing energy workers, including those at Chevron – said it had been trying to reach an agreement with the company on “several key” issues including pay, job security, rosters and training standards.

It added that workers had been “consistently disappointed with the company’s approach to negotiations with the union and Chevron not accepting that an industry standard agreement should apply to the work they perform for the company”.

Energy analyst Saul Kavonic said he currently expects the strike to have a limited impact on global gas prices.

However, he warned that energy prices could surge if the industrial action was stepped up.

Russia’s invasion of Ukraine last year sent oil and gas prices soaring, leading to a sharp rise in energy bills for homes and businesses.

Last week, wholesale gas prices in Europe jumped on concerns of a disruption to supply at Chevron and another Australian LNG plant, run by Woodside Energy.

On Thursday, Woodside said it had reached an agreement in principle with unions representing workers at its North West Shelf plant.

Together, the Woodside and Chevron plants make up around 10% of the world’s supply of LNG.