Australian LNG strikes averted

by Editor

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Members of Australian LNG workers’ union the Offshore Alliance (OA) have endorsed draft enterprise agreements (EAs) covering Chevron Australia’s 8.9mn t/yr Wheatstone LNG, Wheatstone offshore gas platform and the 15.6mn t/yr Gorgon LNG facilities.

Staff voted in favour of the EAs at a mass meeting held at 3pm Western Australian time (8am GMT) on 17 October, the union said. The deal came just before workers were set to resume strikes at the Chevron facilities on 19 October after talks broke down between the sides last week.

The OA has now agreed to suspend strikes, pending acceptance of the final EAs by staff.

“OA members at Chevron have shown incredible patience with this American outfit which kept altering the details of the deal even after they’d shaken on it with the OA negotiating team in late September,” OA spokesman Brad Gandy said on 18 October.

“It’s sad Chevron seems unable to do an honest deal, and we hope this can now be put to rest but if Chevron tries to alter the deal again our members will obviously have no choice but to consider taking protected industrial action.”

Failed talks between unions and Chevron resulted in strikes at the 15.6mn t/yr Gorgon LNG, Wheatstone offshore gas platform and 8.9mn t/yr Wheatstone LNG from 8-22 September, with the labour strife contributing to market volatility in Europe, especially in the Dutch TTF benchmark day-ahead natural gas contract.

Japan stood to lose the most from any protracted dispute that affected output, as Gorgon and Wheatstone supply about 11.7mn t/yr or 16pc of the nation’s LNG imports.

Source: Brendan A’Hearn (Argus Media)