September 18, 2023: On Thursday, Fault at strike-hit Chevron Australia plant shuts 25% of output their union said, increasing the risk of disrupted result from facilities accounting for around 5% of international supply.
Workers at the Gorgon and Wheatstone facilities have briefly ceased work the previous six days after talks with Chevron over wages and working conditions broke down.
The unions had said they would ratchet the pressure on the company from Thursday, possibly by quite stopping work. A union official said they would review what action to take every 12 hours.
Research group EnergyQuest estimated income at risk for Chevron and partners from the strikes at about A$76 million per day. However, it said only a few of that revenue would be recovered as some cargoes may be deferred later.
“There is a marked escalation of protected industrial action today. However, it is in various one-hour blocks,” said the union official, who declined to be named as he was not authorized to speak with media.
“We are strategically assessing the protected industrial action we need to take every 12 hours and will continue to escalate at times which align with our industrial strategy.”
Domestic supplies will not be impacted, the union said.
Chevron had said it would continue to take steps to maintain operations if any disruptions occur without giving details.
Australia is the world’s biggest LNG exporter; its main buyers are in Asia. Traders anticipate that any supply cuts would send Asian buyers competing with Europeans for cargo, spurring spot price volatility in the European gas market.
Dutch and British wholesale gas prices rose slightly on Wednesday, ahead of the strike escalation.