Chevron strike averted in 11th hour union deal

The news: Strikes at two of Chevron's Australian LNG plants have been averted after a union alliance struck a last minute deal with the US energy giant. The Fair Work Commission has been mediating talks and trying to revive an in-principle deal struck in September, which fell apart after unions accused Chevron of welching on commitments.

The numbers: Chevron's Gorgon and Wheatstone projects in Western Australia supply roughly 6%-7% of the world's LNG. The ongoing dispute has contributed to an up to 35% spike in LNG prices in August, Reuters reports. Chevron has said that only a small number of commitments, including reimbursement for travel and meals, have stood in the way of the deal.

The context: Australia is one of the worlds ten biggest natural gas producers, with countries in Asia making up its biggest customer base. Disruptions to Australian LNG production could push more of these buyers into the European market and drive price volatility in the bloc.