AsianOil: Chevron, Woodside hold talks on avoiding LNG strike action

Chevron and Australia’s Woodside said on August 10 they are holding talks with unions to prevent strikes at gas facilities that together account for a tenth of global LNG supply.

Growing apprehensions regarding potential labour strikes at three major Australian LNG facilities – North West Shelf, Gorgon and Wheatstone – have propelled European gas prices to a nearly two-month spike on August 10.

Should these labour disputes escalate, Australia's LNG exports could face substantial disruptions, fuelling heightened competition for the super-chilled fuel. This competition, in turn, could trigger a scenario where Asian purchasers outbid their European counterparts to secure LNG shipments.

Leading players from Japan and South Korea feature prominently among the clients of the North West Shelf project, while LNG produced by Chevron's Gorgon and Wheatstone installations predominantly finds its way to Japan.

Industrial action looks increasingly likely at the Woodside-operated North West Shelf LNG plant, the nation's largest LNG facility. An overwhelming 99% of workers at offshore platforms that contribute gas to this plant have voted in favour of an impending strike.

The Offshore Alliance union has articulated its intention to pursue improved pay through ongoing bargaining meetings, scheduled for August 11 and August 15. A final decision on the matter of striking at Woodside's facilities will be reached following these deliberations.

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