(Bloomberg) -- Chevron Corp.’s liquefied natural gas workers in Australia will delay strikes by one day until Friday as talks with unions continue. European gas prices slumped as much as 9.1%.
The industrial action will not take place at two major LNG plants until 6 a.m. local time on Friday, a Chevron Australia spokesperson said in an emailed statement on Wednesday.
“We will continue to work through the bargaining process as we seek outcomes that are in the interests of both employees and the company,” according to the statement. “We will also continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities.”
Offshore Alliance, a group comprising unions, didn’t immediately comment.
The delay is a sign the dispute, which triggered extreme volatility in prices in recent weeks, could potentially be resolved. The impact of any industrial action may have been limited at first because demand is muted in Europe and Asia, but a prolonged disruption may have sparked a bidding war between the two regions for alternative cargoes in peak winter season.
The workers had threatened to start partial strikes at the Gorgon and Wheatstone plants on Thursday and then follow with full stoppages a week later. That action would have lasted two weeks.
The two Australian LNG plants operated by Chevron made up about 7% of global LNG supply last year. The deal followed a compromise another Australian exporter, Woodside Energy Group Ltd., reached with workers last month to prevent industrial action at its own plant.
©2023 Bloomberg L.P.
