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Australia Gas Strike: As negotiations between Chevron and unions continue, a strike that was set to begin at two significant liquefied natural gas (LNG) facilities in Australia has been postponed.
The series of work stoppages related to the wage and conditions dispute were scheduled to begin on Thursday.
The strike will now go until 06:00 on Friday, Perth time (22:00 GMT on Thursday).
Prices for natural gas recently increased due to worries about the stoppages.
A spokeswoman for Chevron Australia stated, we will continue to engage in the bargaining process as we look for outcomes that are both in the interests of the employees and the company.”
More than 5% of the world’s LNG capacity is supplied by the US energy giant’s Western Australian Gorgon and Wheatstone projects.
The Fair Work Commission, Australia’s industrial arbitration body, has been hosting mediation talks between Chevron and The Offshore Alliance, a coalition of two unions that represent energy workers.
Saul Kavonic, an energy consultant, told the BBC that he didn’t think the initial wave of stoppages would significantly affect gas supplies.
However, the possibility of rolling full stoppages commencing on September 14 might have an impact on global energy markets.
Prices may increase if the strikes continued throughout the winter in the northern hemisphere, according to Mr. Kavonic, in the unlikely event the situation escalates to full stoppages, he said.
Tim Harcourt from the University of Technology Sydney’s Institute for Public Policy and Governance stated that he does not anticipate a protracted strike.
Due to the Fair Work Commission’s early intervention strategies, Australian disputes typically don’t linger as long as those in the United States or the UK, he added.
Having said that, it might have some effect on the world’s supply because it’s a large industry with 500 personnel. But I don’t believe we have reached that point yet.
Due to the surge in oil and gas prices brought on by Russia’s invasion of Ukraine last year, energy costs for homes and businesses have significantly increased.
Although wholesale energy costs have already declined from their peak levels, oil prices climbed this week as a result of Saudi Arabia and Russia extending their supply cutbacks through the end of the year.
For the first time since November, Brent crude finished above $90 per barrel on Tuesday.
The reduction in natural gas supply from Russia to Europe has also led numerous countries to explore for alternative energy sources. To cover the shortfall, many nations are turning to LNG.
Along with Qatar and the US, Australia is one of the top LNG producers in the world, and its exports have contributed to lower global energy prices.
LNG is methane, or methane blended with ethane, that has been purified of contaminants and cooled to about -160C.
As a result, the gas is converted to a liquid that can be transported in pressurized tankers.
At its final location, LNG is transformed back into gas and used just like regular natural gas for cooking, heating, and electrical generation.
