Chevron faces struggle to maintain LNG exports
Chevron is expected to struggle to maintain LNG exports amid a second day of loading bans on shipments from its huge Gorgon and Wheatstone projects.
As the US major sought to deal with ramped-up work bans and partial stoppages at its West Australian LNG operations, unions seized on further signs of large pay increases secured by offshore gas workers elsewhere in the sector, of up to $80,000 a year.
Chevron’s Wheatstone LNG plant is battling a technical fault and industrial action.
Wheatstone separately suffered a technical fault.
A Chevron Australia spokesman said “restart activities are continuing”, when asked about the status of work to resume full production at the second train at the 8.9 million tonne-a-year Wheatstone LNG plant near Ashburton North on the WA coast.
He declined to comment on the work stoppages other than reiterating: “Our focus is on maintaining safe and reliable operations in the event of disruption, and we will continue to manage the range of uncertainties that industrial action may present.”
Energy analyst Saul Kavonic, who is closely watching the industrial action, said the plant trip issue that struck Wheatstone “couldn’t have come at a better time for the unions, as their industrial action can be most effective when more labour-intensive equipment restarts are required”.
The industrial action comes before a hearing on September 22 of Chevron’s application to the Fair Work Commission for a declaration of “intractable bargaining”, which could see the FWC step in and arbitrate a resolution.
“Chevron’s application for arbitration next week will incentivise the unions to escalate strikes more rapidly while they can, as there is a risk they lose that leverage on the 22nd depending how the ruling
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