Talks continue over threatened Australia gas strike

A strike scheduled to start on Thursday September 7th at two major Australian LNG facilities was delayed – but by only 24 hours – with talks between US-based energy major Chevron and two unions continued.

The commencement of strike action has been postponed until 06:00 on Friday Perth time (22:00 GMT Thursday).

A Chevron Australia spokesperson said that “we will continue to work through the bargaining process as we seek outcomes that are in the interests of both employees and the company”.

The US energy giant operates the Gorgon and Wheatstone plants in Western Australia; together they account for more than 5% of global LNG capacity.

Australia’s industrial arbitrator, the Fair Work Commission, has been hosting mediation talks between Chevron and the Offshore Alliance, which represents the two unions representing energy workers.

The initial action would stop short of a full strike, but there is a threat of rolling full stoppages from September 14th, which had the potential to impact global energy markets.

On Tuesday, Brent crude closed above $90 a barrel for the first time since November 2022.

Australia is one of the world’s largest exporters of LNG. Supplies from there, Qatar and the US have helped mitigate rises in global energy prices.