Strike at Australian LNG Operations is Impacting Loading and Exports
The LNG carrier Pacific Breeze (92,830 dwt) finally got underway on June 3 after having been delayed by a work slowdown and now a strike at one of Australia’s largest producers. Union members represented by Australia’s Offshore Alliance walked off their jobs on Tuesday after having delayed their strike a week to give additional time for the negotiations.
In a statement posted online, the Offshore Alliance, which brings together members of the Maritime Union of Australia and the Australian Workers Union, announced the “protected industrial action,” saying the Japanese-owned company INPEX had “fallen short on a number of fundamental claims.” Work at all three of the company’s facilities stopped, and the union said it would impose work bans.
It highlighted that the work stoppage was impacting the loading of the LNG carrier Pacific Breeze. The union asserted even a 24-hour delay would cost upwards of A$200,000 (US$143,000). The vessel, which has a capacity of 183,000 cbm, had been expected to load on May 31, Reuters reported, and was due to reach Taiwan on June 9. Its AIS signal shows it was able to depart early on June 3 and is now expected in Taiwan on June 12. The Marshall Islands-registered vessel is operated by Japan’s K Line under a long-term contract to Taiwan’s state energy company CPC.
Interruptions in the LNG supply could have a large impact as the facility reportedly accounts for approximately 10 percent of Australia’s output. Ichthys has been in operation since 2019 and produces up to 9.3 million tonnes of LNG per year. With supplies from Qatar curtailed due to the closure of the Strait of Hormuz and strikes by Iran on the Qatari fields, demand has increased for U.S. and Australian gas.
The union dismissed media reports of inflated demands and high salaries, while other reports said that it was calling for a three percent increase. It claims the employer has put forth an “offer of zero increases in base salary, operating allowances, superannuation, or severance entitlements.”
that matters most
Get the latest maritime news delivered to your inbox daily.
In April, it took a strike vote reporting a 94 percent approval among 346 members. It served notice on May 18 of the strike after six days of negotiations. Last week, it said, that the facilitated bargaining with INPEX had made significant progress. Talks were scheduled to resume on Wednesday.