**Heading: Chevron Workers Plan Two-Week Strike Amid Pay Dispute**
Workers at Chevron’s Gorgon and Wheatstone liquefied natural gas (LNG) projects in Australia are planning a total strike that will last for two weeks from September 14, according to an announcement made by a union alliance on Tuesday. This move marks a significant escalation in the ongoing disputes over pay and working conditions.
As the world’s largest exporter of LNG, Australia’s ongoing dispute has caused volatility in the natural gas markets. Traders are becoming increasingly concerned about the risk of long-term disruption. The decision to strike comes amidst ongoing [mediation talks](https://www.reuters.com/markets/commodities/chevron-poised-mediation-talks-avert-australia-lng-strike-2023-09-04/) hosted by the Fair Work Commission, Australia’s industrial arbitrator. These talks started on Monday and are set to continue throughout the week. However, brief stoppages have been called by the union from Thursday.
The Offshore Alliance union has decided to escalate industrial action to demonstrate that their bargaining negotiations are far from ‘intractable’. Despite this, Chevron has not yet responded to requests for comment on the matter.
**Increasing Competition in the LNG Market**
If the industrial action carries on for an extended period, it could disrupt LNG exports and likely increase competition for the super-chilled fuel. This could force Asian buyers to outbid European buyers to secure LNG cargo. According to ING, the latest move by the union could be an indication that the mediation talks are not progressing well.
Disruptions in Australian LNG exports could potentially complicate the supply chain. This comes at a time when high storage levels are suppressing short-term prices. Wheatstone and Gorgon have the capacity to provide up to half of Western Australia’s total gas consumption. On Tuesday, some staff [offered to work through the strikes](https://www.reuters.com/business/energy/chevron-australia-staff-offer-repair-domestic-gas-plant-through-strike-2023-09-05/) to help repair the domestic gas plant at Wheatstone.
**Strikes ‘Inevitable’**
The union has already called for industrial action at the U.S. energy major’s Gorgon and Wheatstone projects, which account for more than 5% of global LNG capacity, for seven days from September 7. If parties cannot find a resolution, employees plan work stoppages of up to 11 hours in several blocks and will stop performing certain tasks until September 14.
Energy analyst Saul Kavonic suggests that the “lower-level strikes” from Thursday look almost inevitable now and the latest move by unions will keep their options open to escalate the strikes. “It will create inefficiencies, and the risk of supply impacts grows with time but the mediation process should resolve the issues before the strikes escalate to the point of a material supply disruption,” he said.
Original Story at www.reuters.com – 2023-09-05 08:30:00
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