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Potential strike at Woodside Energy on offshore platforms

Woodside Energy unions are threatening a strike on offshore platforms in Australia over a wage dispute, which could disrupt LNG shipments.

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Unions threaten strike action at Woodside Energy’s North West Shelf offshore platforms. The dispute concerns wages and conditions. The Offshore Alliance is considering a notice period of September 2.

Threat of Strike on Woodside Energy Offshore Platforms

Woodside Energy (WDS.AX) unions are planning a potential strike from September 2 on the North West Shelf offshore platforms. This initiative risks destabilizing global flows of liquefied natural gas (LNG) from Australia, the world’s leading LNG exporter. Workers are demanding better pay and working conditions on these platforms. The Offshore Alliance merges the Maritime Union of Australia and the Australian Workers’ Union. It unanimously adopted a strike notice against Woodside Energy. This measure is conditional on their requests being met. This puts considerable pressure on Woodside, and has the potential to disrupt the global LNG market.

Long-standing dispute over wages and conditions

Woodside and workers on its offshore platforms in the North West Shelf are engaged in a long-running dispute over wages and working conditions. This dispute underlines the persistent differences between the parties. These offshore platforms play a crucial role in supplying Australia’s largest natural gas liquefaction plant. Workers expressed their dissatisfaction with current conditions, prompting the Offshore Alliance to consider strike action.

Strike Notice and Union Tension

In accordance with the law, the Offshore Alliance unanimously approved a strike notice against Woodside Energy. This notice, to run from September 2, is contingent on the workers’ demands not being met. The move is designed to put pressure on Woodside, and raises concerns about possible disruptions to global LNG supplies. In this way, unions seek to obtain more favorable conditions for workers.

Potential Impact on the LNG Market and Price Volatility

The announcement of the potential strike has already caused tremors on energy markets, with increased volatility in gas prices, particularly in Europe. The possibility of a strike has raised fears of stiffer competition between Asian and European buyers for LNG cargoes. The facilities operated by Woodside and Chevron hold a significant share of the global LNG market, amplifying their influence on market dynamics.

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