Emmanuel OchayiUnion members at Chevron’s liquefied natural gas facilities in Australia have voted to reignite industrial action, posing a significant threat of renewed strikes that could disrupt nearly 7% of the global LNG supply.
According to CNN, Brad Gandy, a spokesperson for the union, expressed their frustration, saying, “Chevron has reneged on the commitments they gave the Fair Work Commission only two weeks ago.” He highlighted the unexpected setback.
Join our WhatsApp ChannelThe Offshore Alliance, representing two Australian labor unions, had been diligently working with Chevron to finalize new employment agreements. However, the process took an unexpected turn as Chevron’s legal team attempted to backtrack on previously settled clauses.
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Despite the Fair Work Commission’s proposed deals, which included “substantial improvements in terms and conditions of employment,” Chevron’s workers at key LNG facilities voted to restart strikes. This decision follows weeks of tension after strikes initially erupted over pay and employment conditions.
The repercussions of these strikes extend far beyond Australia’s borders. If production at these facilities halts for a month, approximately 7% of the global LNG supply would be at risk, warns Daniel Toleman, a senior gas and LNG analyst at energy consultancy Wood Mackenzie. In Europe, the mere threat of these strikes has caused fluctuations in natural gas prices since August.
While Dutch natural gas futures saw a 1.3% increase on Friday, they still remain down from late-August highs. Experts, like Alex Froley, an LNG analyst at commodities research firm ICIS, remain cautious, emphasizing that even past strikes haven’t completely shut down production at these sites.
Europe’s reliance on LNG, especially from the United States and Qatar, increased significantly after tensions with Russia, which previously supplied a substantial portion of natural gas. However, Moody’s reports that persistently high and volatile gas prices in Europe may erode competitiveness in energy-intensive sectors, posing a longer-term risk to the continent’s economy.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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