Woodside Energy, Australia’s largest liquefied natural gas company, has reached a tentative agreement with unions representing workers on offshore gas platforms in the North West Shelf Basin. This could save the market from the threat of shutting down the supply of one of the world’s most important LNG exporters. The agency reports Reuters.
The union alliance, which includes the Maritime Union of Australia and the Australian Labor Union, had previously threatened to strike as early as 2 September if demands for higher wages and improved working conditions were not met. However, after Wednesday’s talks, the parties reached preliminary agreement on a number of key issues.
Workers will have the opportunity to vote on ratification of the deal on Thursday evening. Union leader Brad Gandy expressed his satisfaction with Woodside’s “strong proposal” to prevent the strike.
Meanwhile, negotiations between unions and Australia’s other major LNG producer, Chevron, continue amid threats from workers to stop work if demands are not met. More than 99% of Chevron employees have already confirmed the possibility of strike action.
Woodside and Chevron provide about 10% of global LNG exports. News of the potential shutdown has upset the market in recent weeks and fueled rising gas prices. The agreement with Woodside has led to a decline in European prices, but the risks to the market have not been eliminated yet due to ongoing negotiations with Chevron.
According to data from the ICE exchange, prices reached $387.68 per cubic metre. m. but until 19:00 Moscow time decreased up to $361.99.
Previous rise in gas prices in Europe showed Weakness of the EU market.
Source: Gazeta
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