Chevron and unions have agreed to stop strikes at two major liquefied natural gas (LNG) facilities in Western Australia.
Workers have accepted the proposed deal brokered by the country’s labour regulator, said the Offshore Alliance, a collective of two unions.
Strikes had been ongoing since September 8th at the Gorgon and Wheatstone LNG facilities over pay and conditions.
It was thought had the walkouts gone ahead it would have had a major impact on global supply.
Brad Gandy, a spokesperson for the Offshore Alliance, a collective of two unions, said: “At a late-night mass meeting members endorsed the latest offer which incorporates the Fair Work Commission’s recommendations.”
The Offshore Alliance will now collaborate with Chevron to finalise the agreement’s drafting.
It’ll lead to the halting of current industrial actions.
Chevron Australia has not yet responded to requests for comments from the media.
The Gorgon and Wheatstone plants constitute over five percent of global LNG production capacity.
The facilities are owned by the US oil and gas giant Chevron.
Strike caused market turbulence
The strike had caused turbulence in LNG markets, raising concerns about potential disruptions to global gas supplies.
These concerns arose in the context of global energy markets already grappling with increased pressure due to Russia’s invasion of Ukraine.
It has led to soaring oil and gas prices and subsequent spikes in energy costs for consumers.
The Kremlin’s reduction of natural gas supplies to Europe had prompted countries to seek alternative energy sources, with many turning to LNG.
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Australia, along with Qatar and the US, is among the world’s largest LNG exporters.
Its supplies have played a role in stabilising global energy prices.
Saul Kavonic, an energy industry expert, said: “It was quite remarkable that a few hundred workers offshore Western Australia have managed to roil global markets and cause tens of billions of dollars in market movements
“But it happened because there is no resilience left in our global gas system.”