Gas prices jump on strike threat at Chevron Australia
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The news: Unions have announced that workers plan to undertake rolling stoppages at Chevron's two major liquefied natural gas (LNG) facilities in Australia from 7 September, prompting a surge in gas prices in Europe.
The numbers: Chevron's Gorgon and Wheatstone projects account for more than 5% of global LNG production capacity. The announcement of the planned industrial action sent Dutch September natural gas futures 10.4% higher to €38.40 ($64.66).
The context: Concerns of possible strikes at LNG facilities of Woodside and Chevron have stoked price volatility in global markets in recent weeks. Woodside last week resolved worker disputes but unions have warned that US energy major Chevron’s unwillingness to meet workers demands could result in billions of dollars in losses. Chevron’s WA facilities supply to buyers in Asia and Europe but are also the biggest suppliers of gas to the WA domestic market.
