Chevron Australia LNG Unions to Resume Strikes From Next Week

The seven-days notice for strike action at Chevron’s Gorgon and Wheatstone facilities, responsible for around 6% of global LNG output, was filed by the Offshore Alliance, according to a representative of the coalition of two unions who declined to be named.

Chevron did not immediately confirm receipt of the notice.

The Offshore Alliance had called off strikes in late September after reaching a deal brokered by Australia’s industrial arbitrator, the Fair Work Commission, but the unions said last week that Chevron had reneged on the deal.

Barring a breakthrough in talks, unions will be free to resume strikes in seven business days, from next Thursday, according to a union official. During weeks of industrial action last month unions varied the length and extent of strikes.

Markets have so far had a mixed reaction to the threat of further strikes, in part because weeks of action in September did not disrupt shipments.

European gas prices gained on Friday, however Asian spot LNG prices retreated from 7-month highs as demand remained muted.

Chevron has yet to respond to the latest escalation however it could choose to restart a petition requesting the Fair Work Commission intervene in the dispute, dictate an agreement and end strikes.

Chevron would need to give seven days notice before restarting the petition.

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