Mediation Talks Commence Between Chevron and Unions to Prevent Australia LNG Strike

Mediation Talks Commence Between Chevron and Unions to Prevent Australia LNG Strike

CompaniesChevron Australia Pty‌ LtdFollowChevron CorpFollowWoodside Energy Group ⁢LtdFollowSYDNEY/SINGAPORE, Sept 4 (Reuters) -⁣ (This Sept. 4 story has been refiled to remove Chevron executive Freeman‌ Shaheen’s comments)Chevron Australia‌ and ⁢unions representing workers at two of the‍ U.S. ​energy major’s liquefied natural‌ gas (LNG) facilities in Australia began talks on Monday aimed at averting strikes scheduled for Thursday should the parties⁢ fail to⁤ reach a ‍deal.A‌ senior member ‌of the Fair ⁤Work ​Commission (FWC), Australia’s industrial umpire, is hosting ⁢talks in the Western Australia state capital of Perth every day this week, as first‍ reported by Reuters on Friday.Chevron Australia hoped to ⁤”narrow points of⁣ difference” through the‌ mediated bargaining ⁤sessions, a spokesperson said.Employees‌ last week almost unanimously rejected a pay and conditions​ deal ⁤put to them directly by Chevron, bypassing ‍unions.The Offshore Alliance, a coalition of ​two unions, did not immediately respond to a request for comment about⁣ the ‍status of the⁤ talks, which are not open‌ to the​ public or media.Industrial⁢ action will begin at ‌6.00 am local time on Thursday (2200 GMT on ‌Wednesday) at Chevron’s Gorgon and Wheatstone projects, which⁣ account for more than ‌5% of global ⁤LNG production capacity, if parties cannot find a resolution.Employees plan work stoppages of up to 11 hours in several time blocks and⁢ will stop ⁢performing⁤ certain tasks until ⁢at⁣ least ‌Sept. 14.The union group has ​said the stoppages could cost Chevron “billions of ​dollars”.Prolonged industrial action could ⁤disrupt ​LNG exports ⁢and increase competition ‍for the super-chilled fuel, forcing Asian buyers to outbid ‌European buyers to attract ⁤LNG cargo. China and Japan are the top two lifters ‍of Australian LNG, ⁤followed by⁢ South Korea and Taiwan.Reuters GraphicsGorgon, Australia’s second-largest LNG plant, ​has an ​export capacity of 15.6⁣ million tonnes a ​year and Wheatstone 8.9⁢ million.Australia is the world’s biggest LNG exporter and ⁢the⁢ dispute‍ has stoked volatility in natural gas markets with players‍ nervous about​ the risk of long-term disruption.Energy analyst Saul Kavonic said last ⁣week the planned work disruption would “add ​inefficiency” to Chevron’s operations and may keep the projects ‍from ‍sustaining full production ‌”but it is ‌unlikely⁣ to impact production to an extent ⁣it will⁤ move the dial for global markets“.A‍ similar dispute between the union alliance⁢ and Woodside-operated (WDS.AX) North West Shelf LNG facility, ⁢Australia’s biggest, was resolved last month after workers approved a deal.Reporting by Renju Jose and Lewis Jackson in⁤ Sydney⁢ and Emily Chow in Singapore; Editing by Christopher Cushing, Emelia Sithole-Matarise and Sharon SingletonOur Standards: The Thomson Reuters Trust ⁤Principles.⁤ Acquire Licensing Rights, opens‍ new tab

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