On September 8th in Sydney, workers employed at Chevron’s (CVX.N) Liquefied Natural Gas (LNG) projects in Australia initiated a strike due to the breakdown of negotiations. This strike has the potential to disrupt production from facilities responsible for more than 5% of the global LNG supply.
According to the Fair Work Commission, Australia’s industrial mediator that facilitated five days of talks, no further discussions have been planned between the unions and the U.S. energy giant.
Australia stands as the world’s foremost LNG exporter, with its primary customers situated in Asia. The dispute revolves around issues related to wages and working conditions at Chevron’s Gorgon and Wheatstone operations. As a result, this disagreement has influenced gas prices in Britain and Europe, as traders anticipate increased competition from alternative sources in the event of reduced Australian supplies.
Following the announcement of the strike on Friday, European gas prices surged by as much as 12%.