Chevron: Workers at major Australia gas plants to strike

Workers at two large liquefied natural gas (LNG) plants in Australia, operated by US energy giant Chevron, are set to go on strike from 7 September, in a move that could drive up global prices.

Chevron told the BBC it will “continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities”.

The Wheatstone and Gorgon sites produce more than 5% of the world’s LNG.

Fears of strikes recently pushed up wholesale gas prices in Europe.

“While we don’t believe that industrial action is necessary for agreement to be reached, we recognise employees have the right to take protected industrial action,” Chevron said in a statement on Tuesday.

It added that it would “continue to work through the bargaining process as we seek outcomes that are in the interests of both employees and the company.”

In the last week, wholesale gas prices in Europe jumped on concerns of a disruption to supply at Chevron and another Australian LNG plant, run by Woodside Energy.

On Thursday, Woodside said it had reached an agreement in principle with unions representing workers at its North West Shelf plant.

Together with the Woodside and Chevron plants make up around 10% of the world’s supply of LNG.