LNG market braces for Australian strikes

Significant capacity is affected, but the market impact may prove limited

Workers at Chevron’s Australian LNG facilities have started industrial action after talks to avert strikes failed. The Offshore Alliance (OA)—which combines the Australian Workers' Union and the Maritime Union of Australia—had planned full, 24-hour work stoppages at the Chevron-operated Gorgon and Wheatstone LNG facilities from 7 September onwards, for at least 14 days. The start of industrial action was subsequently postponed until 1pm Western Australian time on 8 September. Gorgon is a mammoth 15.6mt/yr facility, and Wheatstone’s capacity is a not inconsiderable 8.9mt/yr, putting their combined output at 6.1% of global supply on an annualised basis. A two-week strike could mean a loss of “