Another labour dispute is threatening to hit Australia´s production of liquified natural gas (LNG).
Unions have given notification they will undertake rolling stoppages and work bans at Chevron’s Gorgon and Wheatstone LNG projects in Western Australia that will start from Thursday 14th September.
The Offshore Alliance (OA), a partnership between the AWU (Australian workers’ union) and the MUA (Maritime Union of Australia), which covers all workers in the offshore oil and gas industry, said in the social media that the “Offshore Alliance lawyers served Chevron with further notice of protected industrial action which will commence after our first 7 days of PIA kicks off on Thursday 7th September.”
The alliance warns that the new protected industrial action notice will escalate workbans and the OA will have rolling 24 x 1 hour stoppages, each day for 14 days from Thursday 14th September.
Colin Parfitt, Chevron vice president of midstream, said in a Bloomberg Television interview that the producer is in active talks with employees and aims “to find a solution that is a win-win-win for Chevron, our employees and the gas market.”
Parfitt said that “Chevron is in an active dialogue and is committed to find a solution” to LNG strike threat.
Colin Parfitt avoided to give a response to the comment of Offshore Alliance that “the OA Log Of Claims will ultimately be claims which Chevron will agree to, but not before they lose a few $Billion – judging by the form guide. Which is ok as Chevron clearly have plenty of loose change in the Chevron piggy bank.”
The facilities, including the Gorgon and Wheatstone onshore processing plants and the Wheatstone offshore platform, supply about 7% of globally traded LNG.
If strikes were to stop production at both facilities for a month, around 7% of global supply would be lost, according to research analysts of global LNG. They also warn that if a strike were to go ahead, prices would rise, particularly if industrial action escalates.
“Offshore Alliance members are yet to exercise their lawful workplace rights to take Protected Industrial Action and our bargaining claims will look more and more reasonable as Chevron’s Gorgon and Wheatstone LNG exports dry up,” the Offshore Alliance said Monday on Facebook.