SYDNEY, Sept 8 ― Workers will begin rolling strikes today at Chevron's gas plants in Western Australia, union officials said, threatening a major production pipeline that pumps out five per cent of global LNG stocks.
News of the widely anticipated strikes has spooked global gas markets in recent weeks, with union officials previously threatening to “jam up” Chevron's operations.
Workers were due to walk off the job yesterday but agreed to a pause after Australia's industrial umpire stepped in to broker last-minute talks.
The Offshore Alliance, which represents Chevron's highly unionised workforce, said this morning the global energy giant would “finally be facing their day of reckoning”.
“It's game on Chevron,” it said in a statement, adding that facilities would be “shut down” if they lacked “competent personnel”.
Strike action would slowly escalate in coming weeks, covering 500 staff and including “rolling stoppages, bans and limitations”, according to union officials.
Although Europe has largely replenished gas stockpiles disrupted by the war in Ukraine, there are fears that further disruptions, coupled with strong demand in Asia, could put the squeeze on supplies.
In a research note this morning, Australia's ANZ Bank said global gas markets were “on edge” as the strike deadline inched closer.
Industrial action taken by Australian staff on Shell's Prelude gas ship lasted for 76 days last year, causing an estimated US$650 million (RM3.03 billion) in lost revenues.
The Offshore Alliance has said escalating strikes on Chevron facilities in Western Australia could cost the company “billions”.
Chevron said it would “continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities”.
Chevron is one of two major natural gas producers in Western Australia, alongside Woodside Energy.
Between them, the two companies account for more than 15 per cent of international natural gas exports.
With capacity to produce more than 15 million tonnes of natural gas each year, Chevron is particularly proud of the Gorgon gas plant ― which it describes as “one of the world's largest LNG projects”. ― AFP
