Australian Union Group says it will Strike at Inpex’s Ichthys LNG plant

Workers in Australia at the Ichthys LNG export terminal in northern Australia will begin strike action on May 27, Reuters reported on May 18.

The union group representing the workers, Offshore Alliance served notice to strike at the facility owned by Japanese energy company Inpex.

In April, 326 of 346 union workers voted to take strike action amid a dispute over pay and working conditions. The two sides held negotiations over a six-day period but were unable to come to an agreement.

Workers at the plant located near Darwin, in the Northern Territory of Australia, have already agreed on the forms of industrial actions, which will include work stoppages between 30 minutes to 24 hours.

About 95% of the workforce at Ichthys are unionised employees. While Offshore Alliance has vowed to strike at any point between May 27 to June 10, the labour rights group has indicated it will still attempt to reach a deal through negotiations during meetings with Inpex on May 25 and 26.

Ichthys ‌liquefied natural gas facility in northern Australia from May 27, in a move that could worsen already tight global energy supplies.

Ichthys boasts a production capacity of 9.3 mn tonnes per year (tpy). Industrial action disrupting production could have a major impact on LNG spot market prices, especially in Asia.

The LNG spot market is already tight amid the disruption caused by the Middle East conflict between Iran, Israel and the US. QatarEnergy and the United Arab Emirates have been able to send only a few cargoes through the Strait of Hormuz as Iran is blocking the strait.

With only a few tankers being allowed to pass through the strait following arrangements with Iran, the blockade has effectively put about 17% of the global LNG market on the sidelines.

The strike announcement by Offshore Alliance also ratchets up concerns about Australia’s role as a reliable supplier of LNG, particularly on the back of Canberra’s recent announcement that exporters will need to begin keeping 20% of supply for the domestic market beginning in July 2027.