The Australian gas industry faces a critical juncture as industrial action threatens to impact key projects, igniting market uncertainty and spurring contingency planning among industry players. The argusmedia news.
- Offshore Alliance members’ overwhelming support for industrial action puts Woodside and Chevron gas output at risk.
- Disagreements over job security, rosters, transfers, and more intensify the dispute’s impact.
- Strikes could disrupt major LNG facilities, causing market uncertainty and potential inter-basin competition.
Voting for Industrial Action
The Offshore Alliance (OA) union, representing Woodside employees, has given the green light to protected industrial action, with an overwhelming 99% of its members employed by Woodside voting in favor. This development paves the way for potential strikes that could disrupt gas production by Woodside and Chevron.
Key Issues in Dispute
Contentious issues at the heart of the dispute include job security, roster agreements, transfers to other worksites, overcycle workings, training standards, travel arrangements, and pay rates. The OA’s disagreement with Chevron points to unresolved negotiations crucial for maintaining operational harmony.
Implications for Exports
Any potential strikes could reverberate through global gas exports. Chevron’s Wheatstone and Gorgon LNG facilities, as well as Woodside’s Pluto and North West Shelf projects, stand at risk. These projects constitute a significant share of global exports, adding an element of uncertainty to LNG supply chains.
Market Response
Concerns over potential strikes have triggered a surge in Northwest European delivered LNG prices. The possibility of inter-basin competition between Asia and Europe could emerge if production disruptions in Australia lead to a supply shortage, influencing global LNG pricing dynamics.
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Source-argusmedia
