Due to unresolved labor disputes, Chevron’s two natural gas companies in Australia plan to begin rotating shutdowns and partial stoppages next month, raising concerns about disruptions to natural gas supplies before the northern hemisphere winter.
In recent weeks, Australia has been the largest exporter in the global natural gas market. The energy companies' labor disputes with employees in the country have rocked the natural gas market, with strike threats exacerbating concerns over a sudden drop in Australia's natural gas exports.
The Offshore Alliance, composed of two local unions, notified Chevron this Monday that it plans to take protected labor actions starting September 7. The Offshore Alliance said that employees at Chevron's Gorgon and Wheatstone plan to take turns stopping work and partially stopping. Gorgon and Wheatstone supply 5% of the world's natural gas.
Chevron and local unions disagree on several key issues, such as job security, staffing, and wages. Offshore Alliance spokesperson Brad Gandy pointed out that although Chevron hopes to resolve issues while ensuring production, the company has shown no sincerity in solving the problems.
Chevron stated that while it does not believe labor action is necessary for reaching an agreement, it acknowledges the employees' right to take protected labor actions. The company will take measures to ensure the safe and reliable operation of the natural gas facilities. Chevron will continue to negotiate with union officials and seek a solution that benefits both workers and the company.
Last week, Woodside Energy reached a preliminary agreement with Australian workers, somewhat easing concerns over natural gas supply due to strikes. Previously, the company's employees had threatened to strike over wages and other issues.
Since the outbreak of the Russia-Ukraine conflict, concerns over energy supply have persisted. The risk of strikes by Australian workers has exacerbated the volatility of natural gas prices. Any disruption in Australian natural gas exports will further intensify imbalances in the energy market, driving severe fluctuations in the prices of natural gas and other energies.
Analysts say that concerns over supply have been dominating natural gas prices. Even though European countries have stockpiled a significant amount of natural gas in advance, the energy market, including natural gas, is still troubled by supply issues.
