Saturday, August 26, 2023

New Battery-Electric Ferry Smashes Records

Uruguayan operator Buquebus is set to become the owner of the first battery-electric ferry in South America, and it will be a record-holder. This lightweight aluminum-hulled ro/pax will have the largest energy storage battery ever installed on a vessel of any kind. At 40 MWh, it will have four times the capacity of the next-biggest installation, and 40 times the power of the world's first battery-powered car ferry, the Ampere. It will also have the longest route of any battery-powered vessel, at the highest speed, and it will refuel with the world’s most powerful shore charging systems.

The massive battery enables a boundary-stretching application of all-electric power. This 425-foot vessel will make the 145-nautical mile crossing between the ports of Buenos Aires and Montevideo, across the Rio de la Plata. It is no small harbor ferry: this vessel will have enough space aboard for 2,100 passengers and crew, plus 225 cars and a 6,000-square-foot duty-free store.

Buquebus has a record of pushing the envelope with high-tech projects. Its flagship vessel, the Francisco, uses LNG-fueled gas turbine engines to reach a top speed of about 55 knots, making it the fastest passenger vessel in the world. When it decided to pursue a battery-electric vessel for its next project, it worked with Francisco's builder - Incat - to explore options. In partnership with battery-builder Corvus and marine technology provider Wärtsilä, Incat designed an aluminum fast-ferry that breaks through the boundaries of all-electric power's potential.

The battery bank design, according to the partners, is what made it all possible. Corvus stripped the mounting rack out of the design concept, reducing weight and making it more compact (while still complying with all safety requirements). The reduced battery-bank weight - combined with aluminum construction - enables a shallow-draft design that can operate in the limited water depth of the Rio de la Plata.

"It is all possible because we have now developed a new battery that is extremely light in weight and also extremely good on volume density," said Corvus commercial director Halvard Hauso.

The battery bank is a massive order for Corvus, equivalent to the firm's total production in its first eight years of operations, according to Hauso. The new design also opens up new horizons for battery-electric power, and in five years, he says, this ferry might not even be considered a big project. "This can open up new markets like crossing the English Channel with zero emissions," Hauso says.

The project has also attracted significant attention for Incat, and is expected to draw in additional business.

"Worldwide interest in Incat’s capabilities to deliver electric ships is a great opportunity for Tasmania and we expect this interest to magnify," said Incat founder Robert Clifford. "We are already increasing our workforce and have just finalized plans for the recruitment of at least another 200 employees over the next 12 months with the expectation that our workforce will more than double in coming years."

Wärtsilä will be providing propulsion system integration, including the batteries, the electric motors, energy management systems, shore charging systems, and eight axial-flow waterjets

HD Hyundai Delivers Bulker Designed to Operate "Without Engineer"

HD Hyundai has delivered what it believes to be the first merchant ship with AI-enabled machinery monitoring and safety systems, which are designed to let the ship sail for extended voyages "without the help of a navigator, engineer, or deckhand."

The vessel is a newly-built 180,000 dwt bulker powered by LNG, and it is owned by H-Line Shipping. It is the first ship to be fitted with HD Hyundai's Integrated Condition Diagnosis Solution (HiCBM) and Integrated Safety Control Solution (HiCAMS). These systems are designed to diagnose equipment faults in real time and "automatically recognize emergencies," like shipboard fires.

HiCBM monitors and manages large, core equipment like main engines, auxiliaries, compressors and pumps. It uses artificial intelligence to detect signs of failures in advance. HiCAMS uses onboard CCTV video feeds and artificial intelligence to watch for safety-related events in real time.

The two systems address a less-discussed challenge of autonomous, unmanned shipping. Navigation automation systems have been created and trialed by many competing technology companies, including HD Hyundai, and have proven a high degree of functionality. With the right autonomous-navigation technology, the vessel can drive itself, and the bridge team can be relocated to a remote monitoring center.

However, for longer over-the-horizon voyages, the equipment-maintenance and emergency-response functions of a human crew have yet to be automated. Monitoring systems that "play the role of an AI crew member" are a step in that direction.

"With the commercialization of this engine automation solution, we are one step closer to the era of the world's first 'unmanned ship' in the field of large merchant ships," said HD Hyundai in a statement.

"The advent of the era of autonomous ships based on artificial intelligence and digital technology is inevitable," added HD Korea Shipbuilding & Marine Engineering Executive Director Kwon Byeong-hun.

Ro-Ro Cargo Ship for European Space Agency “Unfurls” its Sails

sail ro-ro cargo ship — Canopée on trials with the sails (TomVanOossanen photo courtesy of Zéphyr & Borée)

Canopée, which is being called the first hybrid industrial vessel equipped with collapsible wing sails, is ready to begin commercial service for the European Space Agency’s Ariane program. The 5,500 dwt Ro-Ro was fitted with its unique sails last month and has completed sea trials as it prepares to start its commercial service with regular transatlantic crossings.

The project took six years to complete with the concept for the wind-assisted vessel to transport components for the European Space Agency program to the launch site in French Guiana. The ship was designed to meet the specifications of the ArianeGroup which is running the space program, and the challenges of the site in the port of Pariacabo in French Guiana. Canopée needs to be able to navigate the shallow waters and the narrow Kourou River while transporting its cargo.

The vessel was constructed by the Neptune Shipyard in Poland and completed in time for its first trials in December 2022. It departed on a test voyage from Bremen, Rotterdam, Le Harve, and Bordeaux to the South American launch site on December 27, 2022.

(TomVanOossanen photo courtesy of Zéphyr & Borée)

The fitting of the sails was completed in July and the vessel has been undergoing trials first at its dock and then at sea. Developed by AYRO, the sails are each just over 120 feet in height with a surface area of 363 square meters. The sails consist of two flaps, one forward and one aft. The design makes it possible to adjust the angle of incidence of the wings, which turn 360 degrees in relation to the wind while the rear flap can pivot around the secondary mast to create a camber in relation to the front flap. The sails are collapsible.

According to AYRO, the wings generate far more power than conventional sails or single-element wings. They expect the ship will sail at speeds of up to 16 knots to meet its commercial schedule. The proportion of wind power use will vary between 15 and 40 percent, depending on the required speed and wind conditions, which are expected to vary by season. The vessel is also fitted with two diesel engines that provide 3,840 kW. With the four wings, the ship aims to reduce fuel consumption by on average around 30 percent.

Gurit provided composite structural engineering support for the Main and secondary mast, as well as the boom and the crane. (Gurit)

The contract calls for the vessel to make up to 12 crossings per year. She is operating under a 15-year agreement to supply components for the Ariane 6 space program managed and financed by the European Space Agency. Canopée is operated by Alizés, a joint venture between Zéphyr & Borée and Jifmar Offshore Services, and she is registered under the French International Flag.

Equinor Reduces Emissions from Mature Field Using Heat Recovery

Statfjord C which has been in production for 38 years will use heat recovery to reduce emissions (Harald Pettersen photo courtesy of Equinor)

PUBLISHED AUG 22, 2023

BY THE MARITIME EXECUTIVE

Equinor and partners are planning to use heat recovery to produce electric power and reduce emissions marking the first time the technology has been applied to a mature field in production. The Statfjord C platform which has been in service for 38 years looks to cut total annual CO2 emissions by 25 percent while becoming more efficient in its operations.

“Heat recovery for electric power production has been used on new fields, both on the Norwegian Continental Shelf (NCS) and internationally. Now, for the first time, the solution is introduced on a mature field in production. This is possible due to the development of low-weight solutions,” said Ketil Rongved, Equinor’s vice president for FLX projects.

A new steam turbine will be installed on the platform that will replace two gas turbines. The new installation will produce electricity based on surplus heat from two gas compressors. According to Equinor, the new steam turbine will give cost-effective emission cuts and is being implemented by the Field Life eXtension (FLX) unit that is responsible for late-life fields. Its purpose is to optimize the fields’ operations and economy through new ways of working.

“This is the first time this solution is used on an operated field at the (NCS),” said Camilla Salthe, Equinor’s senior vice president for Field Life eXtension. “I am proud of employees and suppliers that have worked in an innovative way to streamline the energy being used at the platform. This is an important contribution to extend the field’s life to 2040.”

The project also involves electrification of water injection and emission cuts related to other energy-intensive processes on Statfjord C. The solution is known as low weight bottoming cycle and critically does not require a power supply from shore. The notes that a heat recovery unit on Statfjord B has cut CO2 emissions by 20,000 tonnes every year since 2021.

Statfjord C is a large platform located on the Norwegian portion of the field in the North Sea. It has a topside weight of 50,000 tons and a storage volume of 302,000 cbm, 1.9 million barrels of oil. It has accommodations for 345 people. The unit started production in June 1985 making it a mature operation producing oil and gas alongside the A and B platforms which have been in operation since 1979 and 1982.

This project is the latest in a series of efforts that Equinor is exploring to lower emissions from offshore oil and gas platforms. In 2022, the company commissioned Hywind Tampen is the world's first floating wind farm built specifically to power offshore oil and gas installations. Located nearly 90 miles off the west coast of Norway, the wind farm began power production in November and provides up to 8.6 MW which was projected to meet about 35 percent of the electricity demand for two fields. The wind farm is expected to cut CO2 emissions from the fields by about 200,000 tons per year.

Crowley and Morgan Stanley Launch JV to Develop Wind Port Infrastructure

Salem wind port — Crowley is involved with the Salem redevelopment project and looks to use the new JV with Morgan Stanley to redevelop existing facilities to support the offshore wind energy sector (Crowley)

Crowley is forming a new partnership with global financial services powerhouse Morgan Stanely as they look to further realize the emerging infrastructure opportunities to support the U.S. offshore wind energy business. The companies announced the formation of a new joint venture that will focus on accelerating long-term contracted growth infrastructure opportunities.

To be known as Crowley Wind Services Holdings, Morgan Stanley Infrastructure Partners (MSIP), the private infrastructure investment platform within the advisory firm, will hold a majority stake in the joint venture. Crowley will operate the business which will focus on repurposing and operating existing U.S. port facilities and leasing them under long-term contracts to offshore wind developers.

The companies highlighted the critical role the onshore terminals are planning in the growth of the offshore wind energy sector and the strong demand that will be created as the U.S. proceeds toward its target of 30 GW by 2030 and 110 GW by 2050. They highlight that the terminal business will support the manufacturing, assembly, and storage of wind farm components as well as provide developers with maritime services such as Jones Act-compliant feedering vessels to transport components from ports to offshore wind installations.

“We believe port infrastructure is essential to the build-out and long-term maintenance of offshore wind projects,” said Daniel Sailors, Managing Director, MSIP. “We are excited to partner with Crowley to provide the foundational infrastructure that will enable the development of this important industry.”

The joint venture looks to build off Crowley’s existing business expertise in end-to-end maritime and logistics capabilities using Morgan Stanley’s financial strength and access to capital.

Crowley has already entered into the wind port business, including port operations and terminaling, feedering vessels and operations, and project management. Through a public-private partnership with the Commonwealth of Massachusetts’ Clean Energy Center and the City of Salem, Massachusetts, Crowley plans to begin construction this fall on the Salem Wind Services Terminal, which will support the development and operation of offshore wind lease areas off the northeast U.S. coast. The project calls for repurposing an old power plant and parts of the space is already being used to support the first offshore wind farms being built near Martha’s Vineyard.

In addition, Crowley is pursuing the development of a U.S. West Coast terminal in Eureka, California, in a public-private partnership. Crowley also has a right-of-first-refusal agreement to lease and potentially develop a wind services terminal at Port Fourchon, Louisiana.

Denmark Allocates $3.9B to Carbon Capture/Storage as it Accelerates Timing

Denmark carbon capture — With Avedore as a backdrop, Denmark outlined a comprehensive approach to carbon capture and storage advancing the deadline to 2029 (Orsted file photo)

Denmark announced a comprehensive plan for carbon capture and storage that includes significant government support as the country also accelerates its timeline while saying that CO2 capture and storage is one of several critical tools to achieve climate goals in Denmark, Europe, and the rest of the world. The announcement of the new plan comes just a week after Denmark postponed its second tender for offshore CO2 storage saying the government needed to finalize a comprehensive plan that resolved government participation in the industry.

“We are moving the requirement for full capture from 2030 to 2029 so that we get more CO2 from the air and into the underground faster,” said says Climate, Energy and Supply Minister Lars Aagaard during a briefing about the new plan at Avedøreværket, a power station just south of Copenhagen. “The plan must also ensure a clearer framework for the burgeoning industry and in this way bring the Danish CCS industry up in scale and down in price. It may well be that it's geeky, but it's in the geekery that things happen.”

The plan was presented as a comprehensive approach to with the government stressing that by pooling resources and creating clear framework conditions for CO2 capture and storage it was providing clarity to Danish industry. The energy minister was joined by Business Minister Morten Bødskov and Transport Minister Thomas Danielsen in presenting the new plan.

Instead of smaller tenders, the government plans to launch two large, comprehensive tenders, one in 2024 and a second in 2025. They plan to invest approximately $3.9 billion, with approximately $1.5 billion for the 2024 tender and a further nearly $2.4 billion in 2025 allocated over a 15-year period to support the programs. The goal for 2024 is to set up plans for 0.9 million tons of carbon capture and storage and a further 1.4 million tons in the 2025 tender. Going forward the government will continue to hold 20 percent state ownership, which is the model that was used for the first three licenses and the key point that the ministry said needed to be resolved before the next offshore tender.

While saying as a country Denmark must capture at least 3.2 million tons of CO2 annually by 2030, the new plan moves forward by one year the requirement for the programs to 2029. They said the possibility is also provided to start the large-scale capture and storage efforts by 2028.

The plan also ensures clear framework conditions for the industry regarding ownership and regulation for the transport of CO2 via pipes. Among other things, the government said it will expand the existing rules for the transport of CO2 to include all forms of CO2 transport, which is particularly important for the transport of CO2 for use in PtX facilities and for CO2 that must be shipped via ports for offshore storage.

The goal in addition to providing greater clarity was to increase the size and scope so that more companies can bid and participate in the efforts.

Denmark earlier this year awarded the first exploration licenses for offshore carbon storage after providing a provisional license for the testing and demonstration of the world’s first offshore storage operation. In addition, they awarded the first licenses for industrial plants to establish capture initiatives first centered on one of Ørsted’s plants but designed to also create the infrastructure for other industrial emitters to participate.

Report: Engineer's Lack of Ability Led to Deadly Fire on LPG Carrier

The fuel filters on AE1, shrouded enclosure at center (Image courtesy MAIB)

The UK's Marine Accident Investigation Branch (MAIB) has released its final report on a fatal engine room fire aboard the LPG carrier Moritz Schulte in August 2020. The investigation was delayed by the pandemic, and the final publication followed three years to the month after the accident.

On the morning of August 4, 2020, the LPG/ethylene carrier Moritz Schulte was offloading a cargo of ethylene at Antwerp. The third engineer, Rajendra Naidu Ponnada, asked the second engineer if he could clean the fuel filter on auxiliary engine one (AE1), which was on standby. Ponnada had recently been promoted, despite unfavorable performance evaluations in his record. The second engineer allowed him to do so and asked if he needed help; Ponnada said that he could do it on his own. The second engineer reminded him that the engine had to remain on standby.

Ponnada started in on the task of cleaning the fuel filter. Instead of rotating a knob at the top of the filter housing to initiate a simple flushing procedure - as the manufacturer recommended and as previous third engineers aboard the vessel had done - he partially valved off the filter using a three-way selector valve, then began to disassemble the housing.

Because it had only been partially valved off, the filter was still under about 80 PSI (5.5 bar) of pressure. When he backed off the nuts that secured the top cover, fuel burst through the o-ring seal and sprayed onto the adjacent auxiliary engine two (AE2), according to MAIB's reconstruction. (The agency salvaged the filter assembly and pressurized it with water to evaluate the spray.)

The loose nuts, raised cover and ruptured o-ring on the top of the fuel filter housing (MAIB)

A reconstruction of the spray from the filter using pressurized water (Image courtesy MAIB)

There were gaps in the lagging on AE2's exhaust, according to MAIB, and the fuel quickly caught fire. It appears Ponnada tried to stop the fuel leak by valving off the intake, then attempted to escape from the smoke-filled engine room. His crewmates put out the fire and attempted to find him in the dark, smoky interior, but they could not locate him. A shoreside fire and rescue team found him about one hour later: he was on the mezzanine level, just feet from the auxiliary engines, unconscious and with labored breathing. He was taken to an intensive care unit, but never regained consciousness and died nine days later. The official cause of death was cyanide and carbon monoxide poisoning from smoke inhalation.

Sadly, MAIB's post-accident inspection found that the filter on AE1 was clean from the start, and Ponnada was performing an "unnecessary task." He had likely been confused by discrepancies between OEM recommendations, the company's planned maintenance system (PMS) instructions, and the practice of past crewmembers, MAIB concluded.

"The 3/E’s decision to remove the AE1 fuel filter elements without first isolating the fuel from the filter assembly demonstrated significant shortfalls in his understanding of machinery systems," found MAIB. "The 3/E was unaware he had chosen an unsafe system of work that posed a significant danger to the vessel, its crew and, ultimately, himself."

On examination of Ponnada's personnel file, MAIB found some inconsistencies. There was no evidence that he had completed promotion checklists at the time that he was promoted to fourth engineer. In addition, the checklist for his promotion from fourth to third had not been completed; the two recommendations for his promotion to third appeared to be those used for his earlier promotion to fourth; and he had not attended a required company course for junior officers. The agency faulted the shipmanager's personnel management procedures for allowing Ponnada to be promoted beyond his abilities.

"This fatal accident has demonstrated the risk of promoting candidates without satisfactory evidence of their competence in terms of technical and behavioral skills, knowledge and experience," concluded MAIB.

The investigators also noted that if the vessel had been built one year later, it would have been required to have emergency escape breathing devices (EEBDs) in more locations around the engine room - including next to the ladders, where Ponnada was found.

The ship manager, BSM, has voluntarily retrofitted extra EEBDs to Moritz Schulte and other older ships to bring them up to requirements for more modern vessels. BSM also undertook a comprehensive corrective action program across its ship management centers, including a review of its crew management software and its documentation requirements for promotions. It has also added shipboard drills for rescues in smoke-filled compartments.

Chinese Bulker Banned for Year from Australia Due to Seafarer Mistreatment

Australia ban — Bulker was banned for a year due to seafarer welfare issues (AMSA)

The Australian Maritime Safety Authority (AMSA) issued one of its stiffest penalties banning a Chinese-owned and managed bulker from Australian waters for one year after inspectors found “apparent serious issues of mistreatment and wage theft from seafarers” working aboard the ship according to the authority. It is part of an ongoing stringent enforcement effort by AMSA to ensure safety issues and seafarer welfare on ships calling in Australian waters.

So far in 2023, AMSA has issued six refusals of access determinations although the five prior vessels were all related to maintenance issues. The Australian authority has increased the number of bans from two in 2022 and four in 2021 as it seeks to ensure proper standards are being upheld. Over the past decade, their website lists 32 ships that have been refused access.

The most recent case involved the Liberian-flagged bulk carrier MSXT Emily. The 85,267 dwt bulk carrier was built in 2022 and is listed as being owned by a Chinese company Fortune Equity Carriers and managed by another Chinese company, MSM Ship?Management Pte Ltd. The vessel was operating under charter to “K” Line of Japan and headed to Australia to load a cargo of coal.

The ship arrived at the Port of Hay Point on August 7 according to its AIS signal and was inspected by AMSA after receiving a “tip-off” from the International Transport Workers’ Federation (ITF). According to AMSA, the investigation revealed widespread cases of violation of seafarers' rights, including instances where seafarers onboard the vessel had not been paid in accordance with their contracts.

“The workforce conditions onboard this vessel are a disgrace, and AMSA will not tolerate this in Australian waters,” said Michael Drake, AMSA Executive Director of Operations. “Wage theft, forgery, and coercion are serious matters, and I have been deeply troubled to hear of the conditions on the MSXT Emily.”

AMSA said its inspectors found evidence that more than US$77,000 in unpaid wages was owed to seafarers working onboard Emily, with the ship’s Chinese operators attempting to pay the amount owed once they were aware that AMSA inspectors were onboard. AMSA accused the vessel’s operator of appearing to have concealed repeated cases of wage theft.

A further investigation revealed evidence according to AMSA of additional labor contract violations. They reported that there were apparently forged signatures from employees on contracts and that five seafarers appeared to have been coerced into signing new employment agreements that had lower salaries. In one case, AMSA said a seafarer had signed a new contract for 50 percent less pay while the individual still held a contract valid for a further four months.

AMSA thanked the ITF for bringing the matter to its attention. The authority, which has banned several vessels from accessing Australian ports and given warnings to others concerning deficiencies, highlighted that the one-year ban was necessary to send the message that seafarer welfare should be a priority for every shipping operator.

"Multiple" Offshore Oil Workers Medevaced Due to Severe Heat Wave

PUBLISHED AUG 23, 2023

BY THE MARITIME EXECUTIVE

A severe heat wave across the U.S. Gulf Coast has created a new hazard for offshore oil and gas workers, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Water temperatures along the Texas and Louisiana coastlines are approaching 90 degrees, and the heat index has risen as high as 110 degrees Fahrenheit in some areas.

These conditions are common in the Persian Gulf offshore oil industry, but are less often found on the U.S. Gulf Coast, and the industry's safety regulator says that it will have to adapt to higher temperatures. In "multiple recent instances," workers in the U.S. offshore oil patch have been so affected by the heat that they had to be evacuated to shore for medical evaluation, according to BSEE.

In one case, a platform operator noticed a contractor was experiencing dehydration symptoms. The individual was given fluids and told to rest, and he was later transported to shore for further evaluation. In another, an onsite medic observed that an employee was showing signs of severe heat exhaustion. The employee was treated with IV fluids on board. After consulting with doctors on shore, the individual was medevaced by helicopter to a local emergency room for further care.

Extreme heat has not only affected the U.S. Gulf. July 2023 was the hottest month on record worldwide, according to the World Meteorological Organization, and average global ocean surface temperatures hit a new record in early August.

An emerging El Nino pattern in the Pacific is a major contributor, along with other natural factors. Average temperature increases due to climate change have also raised the baseline and increased the odds of large scale heatwaves like the one recently experienced in Texas, per the World Weather Attribution Project, a partnership between researchers at Imperial College London and The Royal Netherlands Meteorological Institute.

"Maximum heat like in July 2023 would have been virtually impossible to occur in the US/Mexico region and Southern Europe if humans had not warmed the planet by burning fossil fuels," concluded WWA in a recent assessment.

Warming conditions will likely accelerate over the next year as the current El Nino event gains strength, and more records may be ahead - including the first-ever crossing of the 1.5 degree C temperature increase threshold targeted by the Paris Agreement.

"It is very likely that one of the next five years will actually be the warmest on record and a 66 percent chance — and more likely than not — that we will temporarily exceed 1.5 degrees of pre-industrial value," said Chris Hewitt, director of climate services for the WMO, speaking recently to VOA.

Elevated temperatures may affect offshore oil producers in the U.S. Gulf of Mexico, and BSEE advises operators to manage the effects of high heat on their workforce as they continue to extract oil and gas. There will be plenty of work activity to monitor: Offshore GOM E&P is expanding at a healthy rate, and oil output is expected to rise through 2027, according to the most recent forecast from the Bureau of Ocean Energy Management.

Woodside and Australian Unions Reach In-Principle Agreement on LNG Contract

Woodside LNG platform Australia — North Rankin Complex, North West Shelf Project, Western Australia (Woodside)

Woodside Energy and its labor unions announced that they have reached an in-principle agreement for an enterprise labor agreement for the company’s liquified natural gas operations in Australia. Energy market analysts welcomed the news noting that the threatened strike against Woodside and Chevron was putting as much as 10 percent of the world’s LNG supply at risk. Negotiations are still ongoing with Chevron.

Representatives for the Australian Workers’ Union called the agreement a “huge win” for members. The contract if completed would the be first enterprise-wide agreement in decades covering both on-shore employees and the over 150 workers at Woodside’s offshore LNG platform Goodwyn Alpha, North Rankin Complex, and Angel Platform. It also marks the union’s successful negotiations with three of the four large producers in Australia.

The Offshore Alliance, which is made up of the Australian Workers’ Union and the Maritime Union of Australia, called the agreement a “positive step” saying that Woodside had made a strong offer without the unions having to proceed with their threatened industrial action. The alliance reported that the in-principle agreement came as a 15-hour meeting and at the deadline set by the union to start a countdown toward a strike. The unions had authorization to begin a strike which was expected to start as early as September 2.

“Despite the lengthy road to this point, we are relieved that Woodside has now taken a more pragmatic approach and decided to offer our members an enterprise agreement with industry-standard terms and conditions,” said AWU WA Secretary Brad Grandy. Woodside in its statement said that the agreement covered all claims related to remuneration and other terms and conditions of employment.

Union members were scheduled to meet today to review the terms of the in-principle agreement and determine next steps. Woodside said it would be working with the union to finalize the agreement which would require a union vote and approval by Australia’s Fair Work Commission. They noted that the unions had agreed not to file for an industrial action while the process is underway while the union said members would also consider withdrawing their notices.

Just four days ago, the Electrical Trades Union which was negotiating alongside the alliance said it was “gearing up to take on the giants,” referring to Woodside and Chevron. “ETU members refuse to settle for anything less than they rightfully deserve,” the union warned.

Last year, the unions held out for 76 days in a strike against Shell before reaching a new agreement. Workers at INPEX secured a deal with the union earlier in 2022.

Chevron remains the last of the majors to reach terms with the union. The Offshore Alliance members began voting to authorize a possible strike. Union members at both Chevron’s downstream services and Gorgon platform were due to return their ballots today while workers at Chevron’s Wheatstone platform were due to submit their votes on Monday, August 28.

Industry analysts are hopeful that the initial agreement with Woodside would clear the way for a similar resolution with Chevron. Traders in LNG remained cautious but the announcement from Woodside and the unions took some pressure off the market which was bracing for a potential strike.

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