- Strike Action Affects LNG Facilities in Australia, Impacting Natural Gas Prices
- Moderate Increase in UK Petrol Prices Amidst Global Energy Price Pressures
- Global LNG Trade and Its Impact on Energy Prices
After strike action began at two main liquefied natural gas (LNG) facilities in Australia, natural gas prices increased.
The walkouts are occurring at Chevron’s Gorgon and Wheatstone facilities in Western Australia over pay and working conditions.
The US energy giant’s two LNG facilities account for over 5% of the world’s total LNG capacity.
Friday saw a 10% increase in wholesale petrol prices in the United Kingdom.
According to analysts at Engie EnergyScan, “prices are up this morning, but only moderately.”
“We have not yet reached the point of supply shortage. So, no need to despair in a context where all other fundamentals are rather bearish,” they added.
Australia, along with Qatar and the United States, is one of the world’s largest exporters of LNG, and its supplies have served to reduce global energy prices since Russia began reducing its natural gas exports to Europe.
The Fair Work Commission, Australia’s industrial arbitrator, has been hosting mediation talks between Chevron and the Offshore Alliance, a partnership of two unions representing energy employees.
Chevron spokesperson: “Unfortunately, after numerous meetings and conciliation sessions before the Fair Work Commission, we continue to disagree on key terms.”
Brad Gandy, spokesperson for the Offshore Alliance, stated that Chevron’s position had “barely budged” after five days of negotiations.
He added, “Offshore Alliance members urge them to change course so that this dispute can be resolved.”
Even though wholesale energy costs have decreased since Russia invaded Ukraine last year, price pressure continues.
After Saudi Arabia and Russia extended their supply limits through the end of the year, oil prices rose this week, with Brent crude trading at about $90 per barrel.
LNG is methane or a mixture of methane and ethane that has been purified and chilled to approximately -160C.
This transforms the gas into a liquid, allowing it to be transported in pressurized containers.
At its destination, LNG is converted back into gas and used as any other natural gas would be for heating, cooking, and generating electricity.
