Possible Australia LNG Strikes Could Leave Market Short of Cargoes

Potential industrial action at Australian LNG facilities could tighten supply and boost prices, as Asian buyers - particularly in Japan - are forced to source alternate volumes, according to Bloomberg.

• “Asian buyers would need to pull more strongly on Atlantic LNG to balance any shortfalls in the event of a strike, which would tighten supply fundamentals in Europe and the Atlantic,” Jake Horslen, LNG Anlayst at Energy Aspects, said.
• Nick Campbell, a director at consultant Inspired Plc said that Asian buyers “are likely to bid up LNG imports” to replace Australian volumes if there were disruptions, which would affect Europe as well, said.
• As LNG now acts as the baseload supply in Europe following reduced Russian gas flows, any risk to supply is likely to support European prices.
• Workers at Woodside and Chevron LNG Platforms and facilities in Australia have voted to take industrial action Aug. 9. The exact timing of any strikes remains unclear, although the result means the workforce can cease operations with 7 days’ notice.
• As a result, TTF prices spikes as high as €43.545/MWh, the highest level since 15 June and the highest daily gain since March 2022.