Strikes at Chevron Corp.’s liquefied natural gas export plants in Australia could begin as soon as Sept. 7, threatening to disrupt global energy supply and send fuel prices higher.
Unions gave notice that industrial action at the Gorgon and Wheatstone export plants will begin if Chevron doesn’t reach an agreement with workers, the company said Monday in an emailed statement. Chevron said it will “continue to work through the bargaining process as we seek outcomes that are in the interests of both employees and the company.”
The threat of strikes has roiled global gas markets since early August, when unions first voted for potential labor actions at three plants in Australia. The two Australian LNG plants operated by Chevron make up approximately 5% of global LNG supply.The Offshore Alliance, which includes the Australian Workers’ Union and the Maritime Union of Australia, didn’t immediately respond to requests for comment.
Setting a specific date to begin the strike ratchets up pressure on Chevron, posing a more imminent threat to its production in Australia. Australian Woodside Energy reached a breakthrough with unions last week, avoiding strikes for its North West Shelf LNG complex.European benchmark futures traded 7.8% higher at 3:42 p.m. in Amsterdam.
While Europe doesn’t directly import LNG from Australia, any disruption could tighten global supply and risk triggering a bidding war with Asia for spare gas shipments. The drop in Russian pipeline gas deliveries to Europe following the war in Ukraine last year forced the region to depend more on LNG.
To be sure, European gas storage sites have refilled to a seasonal high, reducing the risk of a shortage. Meanwhile, a weaker recovery in Chinese LNG demand has allowed for more fuel to be shipped to Europe.
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