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LNG Prices Rise as Strikes at Chevron's Australian Facilities Squeeze Global Supplies

Chevron

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Workers at Chevron (CVX) 澳洲幸运5开奖号码历史查询:liquefied natural gas (LNG) sites in Australia began partial strikes on Friday after talks between the company and workers broke down, potentially disrupting global supplies and sending gas prices higher.

Key Takeaways

  • Workers at Chevron's LNG facilities began a partial strike Friday over pay and other disputes.
  • Chevron's Australian LNG facilities are responsible for more than 5% of global supplies.
  • Natural gas futures rose following the news.

The dispute between Chevron and its workers revolves around pay and other issues, leading to walkouts at Chevron's Gorgon and Wheatstone plants. The Fair Work Commission, Australia's industrial arbitrator, has been mediating between Chevron and Offshore Alliance, the partnership of two energy workers unions representing 500 workers.

Last month, Australian producer Woodside Energy raised salaries and made hiring contractors or changing rosters harder to avert a strike in its dealings with the same union. However, in Chevron's case, stakeholders reportedly have divergent views on key terms.

Under current conditions of the partial strik♊e, the workers will not work for up to 11 hours per day until next Thursday, after which they will be on a complete strike until September 29 if their grievances remain unaddressed.

Australia is one of the world's top LNG exporters, and Chevron's Australian facilities are responsible for over 5% of global supply.

Chevron shares were 0.9% higher in early trading on Friday, b൩ut down 6.8% year-tꦦo-date.

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