Employees at Chevron’s Gorgon and Wheatstone liquefied natural gas (LNG) facilities in Western Australia are planning to engage in strikes over disagreements regarding pay and working conditions. The Offshore Alliance (OA), a union representing these workers, announced that starting from September 7, there would be rolling stoppages and various limitations and bans. This decision comes after what the OA described as Chevron’s “inept and incompetent” efforts in enterprise bargaining agreement (EBA) negotiations.
The OA, comprising the Maritime Union of Australia and the Australian Workers’ Union, expressed their determination to sustain the industrial action longer than Chevron in their campaign for a fair EBA. Chevron’s spokesperson responded to the situation, acknowledging the workers’ right to take protected industrial action. They affirmed the company’s commitment to maintaining safe and reliable operations despite potential disruptions and continuing the bargaining process to seek mutually beneficial outcomes.
Australia is a leading global LNG exporter, with the Gorgon and Wheatstone facilities together representing about 7 percent of the world’s LNG supply. The prospect of industrial actions at these facilities has already caused significant price fluctuations in global LNG markets. Particularly in Europe, gas prices have surged in response to anticipated disruptions at these Australian sites. Given the current global energy context, particularly following Russia’s invasion of Ukraine, any interruption to Australia’s LNG production could exert additional pressure on future supplies.
The Offshore Alliance has indicated the potential impact of their actions on Chevron’s LNG exports, suggesting possible substantial revenue losses for the energy company. This development comes after the Offshore Alliance and Woodside, another Australian energy company, successfully reached a deal for higher pay, thus averting a strike at Australia’s largest LNG facility at North West Shelf.
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