Markets Await Woodside-Union Talks Outcome, Chevron Boosts Output

Markets are currently awaiting the outcome of ongoing discussions between Woodside and the unions, which could result in industrial action by 2 September. Chevron plans to increase domestic gas output ahead of possible industrial action.

• Woodside Energy and the unions were scheduled to hold talks on Wednesday. If the dispute is not resolved by the end of the business day, workers have endorsed giving the company strike notice as soon as 2 September.
• Separately, a ballot of workers at Chevron’s Gorgon and Wheatstone downstream facilities is to be finalized by 3pm Perth time tomorrow.
• Chevron said on Wednesday it would increase domestic gas production at its Wheatstone project amid concerns of a strike. The capacity would rise to 215 TJ/d from 205 TJ/d previously.
• European gas prices eased back today after rising to the highest level since 15 June on Tuesday of €44.80/MWh.
• "Supply and demand balance in LNG is quite matched which is why we see some vulnerability (in prices)," Zoe Yujnovich, Shell's integrated gas and upstream director, said.
• "It's been a little bit of an over-reaction globally in terms of price response," Yujnovich said.