Chevron workers upcoming puts major production pipeline at risk

By Al Mayadeen English
Source: Agencies
8 Sep 2023 10:56

Anticipation of these strikes in Western Australia has caused unease in global gas markets in recent weeks, as union representatives had previously indicated their intent to disrupt Chevron's operations.

A Chevron sign displayed outside one of the company's gas stations in Bradenton, Fla., Feb. 22, 2022 (AP)

Union officials have announced that employees are set to initiate a series of strikes commencing this Friday at Chevron's gas facilities in Western Australia. This action poses a significant risk to a major production network responsible for generating five percent of the world's LNG reserves.

Anticipation of these strikes has caused unease in global gas markets in recent weeks, as union representatives had previously indicated their intent to disrupt Chevron's operations.

Originally scheduled for Thursday, the work stoppage was temporarily postponed following intervention by Australia's labor regulatory authority, which facilitated last-minute negotiations.

The Offshore Alliance, the union representing Chevron's unionized workforce, stated on Friday morning that the global energy conglomerate would now have to confront the consequences of its actions.

"It's game on Chevron," it said in a statement, adding that facilities would be "shut down" if they lacked "competent personnel".

“It’s game on, Chevron.” 👀 #ausunions pic.twitter.com/L0ZZjXDvIG
— Sarah Missen (@sarah_missen) September 7, 2023

According to union officials, the strike action by 500 Chevron workers is expected to gradually increase in the coming weeks, with rotating work stoppages, bans, and restrictions.

In a research note released on Friday morning, Australia's ANZ Bank remarked that global gas markets were "tense" as the strike deadline approached.

A strike undertaken by Australian personnel aboard Shell's Prelude gas vessel endured for 76 days last year, resulting in an estimated loss of $650 million in revenue.

The Offshore Alliance has warned that the ongoing strikes at Chevron's facilities in Western Australia could cost the company billions of dollars.

Chevron said it is committed to maintaining safe and reliable operations, but the strikes could disrupt production and lead to financial losses.

Chevron is one of two major natural gas producers in Western Australia, and the strikes could have a significant impact on the state's economy.

The Gorgon gas plant is one of the world's largest LNG projects, and any disruption to production could have a knock-on effect on global gas markets.

The strikes are the latest in a series of industrial actions by workers in the resources sector in Western Australia.