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Strike at Australian LNG facilities delayed as talks continue


Strike at Australian LNG facilities delayed amid ongoing talks

A strike planned at two major liquefied natural gas (LNG) facilities in Australia by Chevron and unions has been postponed as negotiations continue. 

It was initially scheduled to start today (Thursday, September 7) over disputes concerning pay and conditions.

The strike action is now set to commence at 6am on Friday, September 8, Perth time (22:00 GMT Thursday).

Read More: Chevron Battles Unions To Prevent Gas Worker Strike In Australia That Could Affect World Supply

The industrial arbitrator in Australia, the Fair Work Commission, has facilitated mediation discussions between Chevron and the Offshore Alliance.

Offshore Alliance is a coalition of two unions representing energy workers

While the first round of stoppages is not expected to impact gas supplies significantly, the looming threat of full stoppages from September 14 could affect global energy markets. 

If the situation escalates to complete shutdowns, approximately six percent of global LNG supply could be disrupted.

Read More: Rail Strikes Cause Widespread Travel Chaos In The UK

It potentially leads to price spikes, especially during the northern hemisphere winter.

Tim Harcourt from the Institute for Public Policy and Governance at the University of Technology Sydney expects a relatively short-lived strike.

“Australian disputes don’t last very long”

He said: “Generally, Australian disputes don’t last very long because the Fair Work Commission is designed to intervene very early so we don’t have the long disputes you get in the USA or the UK.

“Having said that, because it’s a significant industry with 500 workers, it could have some impact on global supply. But I don’t think we’re at that stage yet.”

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Russia’s invasion of Ukraine last year spiked the oil and energy prices.

It led to higher consumer energy bills. 

Brent crude closed above $90 a barrel for the first time since November.

Russia’s reduction in natural gas supplies to Europe prompted nations to seek alternative energy sources, with many turning to LNG. 

Australia, alongside Qatar and the US, is a major LNG exporter, contributing to a stabilizing effect on global energy prices. 

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