Employees of the energy group Chevron threaten to go on strike in Australia from next week. This increases the pressure on the negotiations on wage increases. The company’s feared strike in Western Australia could have far-reaching consequences for the global supply of liquefied natural gas (LNG).
The unions said strike action at the LNG plants in Gorgon and Wheatstone would begin on September 7 if an agreement is not reached with the American oil and gas group Chevron on higher wages and better working conditions. Strikes would not have an immediate effect on production at the factories, but a prolonged work stoppage does increase the risk of gas supply disruptions.
Gas prices have already risen in recent weeks in anticipation of possible strikes in Australia. At another Australian energy company, Woodside Energy Group, strikes were prevented last week by a deal with employees. Prices then dropped again.
However, European gas prices rose again on Monday because one of Norway’s gas fields, the largest for Europe, was shut down for maintenance last Saturday.
Driving effect on natural gas price
A delay in the deliveries of Australian gas means that Asian customers, for example, are looking for alternatives. This could lead to more competition for European LNG customers, which would push up the price of natural gas. Chevron’s two Australian gas facilities accounted for about 7 percent of global LNG supply last year.
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