Currency gas prices in Europe could stay elevated through the end of 2023 due to strikes at Australian factories. In an interview with RIA Novosti, Applya’s Senior Advisor, Ivan Timonin, commented on exchange rates around 500 dollars per thousand cubic meters on the London ICE market the day before. Timonin noted that Europe is attempting to diversify its Russian pipeline gas supply, and under these conditions the demand for liquefied natural gas LNG continues to rise in 2023. He also emphasized that the world market remains tight overall.
Australia ranks as the world’s second largest LNG producer after the United States, and its global market share is roughly 20 percent this year. Major players include Woodside and Chevron, whose workers are preparing for a strike. Timonin highlighted that Australian companies control substantial capacity through projects such as Gorgon, North West Shelf, Pluto LNG and Wheatstone, collectively representing a significant portion of the market.
If the Wheatstone and Gorgon operations face work stoppages next week, it could push global LNG supply at risk. Unions are seeking higher wages and limits on outsourced labor. Bloomberg reported that such disruptions might threaten fuel availability in the near term and push LNG prices higher.
Japan, China and South Korea are among Australia’s biggest buyers, absorbing the bulk of LNG exports from the country. The situation adds another layer of concern for European energy planners, who are already grappling with diversified supply routes and the challenge of securing stable gas deliveries as markets adjust to shifting global trade patterns.
Recent warnings from Germany about potential gas shortages by 2027 underscore the ongoing risk landscape facing Europe as it navigates a transitional energy mix and seeks reliable sources of LNG to cushion any shortfalls. It is clear that the LNG market remains sensitive to labor actions, geopolitical signals, and the evolving decisions of major producers and buyers around the world. Attribution: Bloomberg, industry observers, and market participants have noted the potential influence of these factors on price trajectories and supply assurances for the coming years.