Prices Rise Again As Unions Give Notice Of Industrial Action

The European LNG October contract rose 8.2% on Monday to above EUR40 while north Asian prices were steady. It jumped after unions in Australia gave Chevron notice of strike action. Prices have been moving with developments related to industrial relations at Australia’s North West Shelf facilities. Prices are up almost 20% since last Thursday’s low, which was driven by the Woodside agreement avoiding actions at its plants.

• Unions have given notice of industrial action at three of Chevron’s facilities due to start on September 7 which will impact LNG exports. There will be rolling stoppages, bans and limitations which will intensify each week until Chevron agrees to workers’ “bargaining claims”. Chevron has said that it will continue negotiations. The affected plants produce around 6% of the world’s gas supply, according to ANZ.
• Adding to market jitters are Norwegian flows which have fallen to their lowest in over a year due to scheduled maintenance. But European gas storage is at a seasonal high and weaker-than-expected demand from China has meant easier European access to supplies. As such gas prices are well below 2023 levels.