Chevron LNG workers in Australia are on strike until Friday

A 3D-printed natural gas pipeline is placed in front of the Chevron logo shown in this illustration taken on February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquisition of License Rights

SYDNEY, Sept 6 (Reuters) – Workers at Chevron’s liquefied natural gas (LNG) facilities in Australia have agreed to suspend a planned strike for one day, hours before industrial action is due to begin in an ongoing dispute that has rocked the gas sector. markets.

Two union representatives, speaking on condition of anonymity, told Reuters late on Wednesday that workers would delay the strike until 6 a.m. local time in Perth on Friday (2200 GMT Thursday).

Chevron confirmed the stoppage in an emailed statement minutes later and said unions had notified them of the delay of about one day.

A Chevron Australia spokesperson said: “We will continue to work through the negotiation process as we seek results that are in the best interests of employees and the company.”

“We will also continue to take the necessary steps to maintain safe and reliable operations in the event of a disruption at our facilities,” Chevron said.

It was not immediately clear why the stoppage.

The industrial action was due to begin at 1 am local time Thursday (1700 GMT) as ongoing disputes over wages and conditions remained unresolved.

The Dutch October natural gas contract fell 7.2% to €31.45 per MWh after news of the outage.

Unions and Chevron have been participating in mediation talks hosted by the Fair Work Commission, Australian industrial arbiter, throughout this week.

Energy analyst Saul Kavonic said: “There must be progress in the negotiations, with Chevron moving more towards union requests, which made the unions willing to allow some time before the strike.”

Australia is the world’s largest exporter of liquefied natural gas, and the ongoing dispute has fueled volatility in natural gas markets, as traders worry about the risk of long-term disruption.

Chevron’s Gorgon plant, Australia’s second largest LNG plant, and its operations at Whetstone account for more than 5% of global LNG production capacity.

Reporting by Louis Jackson in Sydney. Additional reporting by Emily Chow and Sudarshan Varadhan in Singapore. Editing by Nick Zieminski and Tony Monroe

Our Standards: The Thomson Reuters Trust Principles.

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Reports on breaking news in Australia and New Zealand covering the biggest stories across politics, business and commodities. I previously wrote about stocks on Morningstar.

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