February 8, 2025
Chevron, unions begin arbitration talks to avert Australia LNG strike – Reuters

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The Chevron logo is pictured after the US government granted a six-month license allowing Chevron to boost oil production in a US-sanctioned Venezuelan well, Caracas, Venezuela, December 2, 2022. REUTERS/Gabby Ora // FILE PHOTO Licensing rights obtain

SYDNEY, Sept 4 (Reuters) – Mediation talks to stop an attack on two major liquefied natural gas (LNG) facilities of US energy major Chevron (CVX.N) in Australia began on Monday, with the aim of reaching a settlement on Thursday if the parties fail to reach an agreement. To prevent attacks from happening. reach a deal

Australia’s industrial umpire, a senior member of the Fair Work Commission (FWC), is hosting talks every day this week in Perth, the capital of Western Australia state, as Reuters first reported on Friday.

A spokeswoman said Chevron Australia hoped to “narrow points of difference” through mediated bargaining sessions.

Workers last week almost unanimously rejected a pay and conditions settlement offered directly to them by Chevron, bypassing the unions.

The Offshore Alliance, a coalition of the two unions, did not immediately respond to a request for comment about the status of the talks, which are not open to the public or media.

If the parties cannot find a solution, industrial action will begin at 6 a.m. local time on Thursday (2200 GMT on Wednesday) at Chevron’s Gorgon and Wheatstone projects, which account for more than 5% of global LNG production capacity.

Workers are planning to stop work for 11 hours in several time blocks and will stop some work till at least 14 September.

Union groups have said the stoppage could cost Chevron “billions of dollars” in losses.

Prolonged industrial action could disrupt LNG exports and increase competition for the super-chilled fuel, forcing Asian buyers to outbid European buyers to attract LNG cargoes. China and Japan are the top two lifters of Australian LNG, followed by South Korea and Taiwan.

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Australia’s second largest LNG plant, Gorgon, has an export capacity of 15.6 million tonnes per annum and Wheatstone has 8.9 million tonnes.

Australia is the world’s biggest LNG exporter and the dispute has added to volatility in natural gas markets with players jittery over the risk of long-term disruption.

A similar dispute between a union coalition and Australia’s largest Woodside-operated (WDS.AX) North West Shelf LNG facility was resolved last month after workers approved a settlement.

Reporting by Renju Jose and Lewis Jackson in Sydney; Editing by Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.

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