(Bloomberg) -- European natural gas prices plunged as traders await the outcome of crucial negotiations to avoid strikes at Australia’s biggest export facility for the fuel.
Benchmark futures dropped as much as 18% on Wednesday, before paring losses. The contract settled on Tuesday at the highest level since April, with tensions running high in recent days over the possibility of walkouts.
Discussions between Woodside Energy Group Ltd. and officials representing workers at its North West Shelf LNG facility are ongoing in Perth and could run well into the evening. If there’s no progress, strikes could begin as early as Sept. 2.
The company said there was still no update on talks to report.
Separately, staff at some Chevron Corp. facilities are also considering walkouts. The possibility of industrial action in Australia risks disrupting as much as 10% of global liquefied natural gas supplies, just as Asia and Europe prepare for the winter heating season.
Read more: LNG Strikes in Australia Loom If No Progress in Talks Wednesday
--With assistance from Anna Shiryaevskaya.
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