European gas prices have surged as employees at two prominent Chevron sites in Australia initiated limited strikes following unsuccessful negotiations.
Dutch benchmark futures climbed up to 11% reaching €36 per megawatt-hour following the news about strikes at the Gorgon and Wheatstone LNG plants. These facilities provided about 7% of the world’s liquified natural gas in the previous year.
The workers intend to undertake around 20 different actions, such as halts and prohibitions on particular duties, as stated by the Offshore Alliance, a consortium of leading unions.
Recent news about the expected strikes has rattled the international gas market, causing a significant price hike. Union representatives had earlier warned of disrupting the firm’s processes.
The Offshore Alliance commented that the global energy behemoth will “face its moment of truth,” stating, “The ball’s in your court now, Chevron.”
Australia stands as the largest LNG exporter globally, primarily serving Asian markets. Concerns over salary and working conditions at Chevron’s Gorgon and Wheatstone facilities have bolstered gas prices in Britain and Europe. Traders are apprehensive that reduced supplies from Australia might heighten the demand for alternative sources of this super-cooled fuel.
