Australian LNG Strike Begins to Disrupt Cargo Loadings at Ichthys
Industrial action at the Ichthys LNG project offshore Australia has started to affect loadings, with Reuters reporting that one tanker has been delayed as a result of the limited strike.
The strike, limited to two hours in the mornings and two hours in the evenings, began earlier this week, after trade unions representing workers at Ichthys and the operator of the project, Japan’s Inpex, failed to reach an agreement on wages and working conditions.
The Pacific Breeze LNG carrier docked at Ichthys to load a cargo for delivery in Taiwan. Loading, however, has been delayed because of the strike, the Offshore Alliance, which represents the workers, said in a social media post as quoted by Reuters. Originally, the Pacific Breeze was scheduled to load on May 31 and arrive at its destination on June 9, Kpler data cited by Reuters showed.
The Offshore Alliance, a coalition of two trade unions, last month notified Japan’s Inpex that a strike may be imminent at the company’s Ichthys LNG project. “We have made it clear to Inpex that we aren’t going to cop the short-changing of our bargaining claims simply because Inpex could not be bothered reading our claims for six months,” a spokesperson for the Offshore Alliance said in a statement on May 18.
The strike, although limited for now, could broaden to full-scale industrial action later this month unless the differences between workers and the employer are resolved. Meanwhile, LNG prices in Asia are 75% higher than they were before the war between the United States and Israel against Iran began at the end of February. Any additional disruption, such as a strike in the world’s second-largest LNG exporter, would add to the price pain for energy importers in the world’s largest LNG market. The Ichthys project has a capacity for 9.3 million tons of liquefied gas annually.
By Irina Slav for Oilprice.com
Strike Action at Major Australian LNG Facility Raises Supply Concerns
Union workers at the Ichthys LNG project in Australia have started limited industrial action at the facility, threatening broader work suspension unless the wage dispute with employers is resolved soon.
The Offshore Alliance, a coalition of two trade unions, last month notified Japan’s Inpex that a strike may be imminent at the company’s Ichthys LNG project. “We have made it clear to Inpex that we aren’t going to cop the short-changing of our bargaining claims simply because Inpex could not be bothered reading our claims for six months,” a spokesperson for the Offshore Alliance said in a statement on May 18.
Later, the media reported some progress had been made in the negotiations, but the latest reports suggest this has not led to a final agreement on wages. Reuters noted in its coverage of the developments that Ichthys accounts for a tenth of Australia’s total exports of liquefied natural gas.
For now, the workers will stop work for two hours in the morning and another two hours in the evening. Unless the wage talks yield results that satisfy the Offshore Alliance, a broader strike will begin on June 11 and last until June 23.
The industrial action will include a “ban on all activities associated with the preparation, connection, and loading of hydrocarbons (including LNG, LPG, and condensate) from the Bladin Point onshore storage tanks to an offtake carrier, excluding when an offtake has already commenced,” the unions said in a notice to Inpex, as cited by Reuters.
Ichthys LNG produces 9.3 million tons of the superchilled fuel annually, which makes any disruption in production and loadings a most unwelcome development for Asian importers, notably Japan. Japan is the world’s second-largest importer of liquefied natural gas due to its energy commodity scarcity. The country recently made a pivot back to coal because of the supply crunch in the Middle East.
By Irina Slav for Oilprice.com
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