Japan LNG Buyers Not Ruling Out Measures as Australian Strikes Loom

Japanese buyers of LNG from Australia’s Gorgon and Wheatstone have not excluded taking alternative measures from Sept. 7 when industrial action is scheduled to start, according to Platts.

• However, strikes are not expected to significantly impact Japanese LNG procurement in the short term, although drawn out stoppages could force buyers to seek alternative supply.
• "There is no spot [LNG] demand from Japan heard yet," one market source said. "At this moment, stocks look fine and even if there is [a supply suspension], supply looks fine for prompt supply," a market source told Platts.
• In 2023 to date, Japan has accounted for 46.6% of total LNG exports from the Gorgon and Wheatstone projects, according to Platts.
• Workers at the two facilities plan to stop work for seven hours in two blocks on September 7, escalating to 10 hours on September 8 and 11 hours on September 9 according to Reuters reports.
• A smaller stoppage of three hours is planned at the Wheatstone production platform from September 7, it reported with planned action out till the 14th of September.