Chevron Faces Strike At Its Australian LNG Facilities: Report

Chevron Corp CVX Gorgon and Wheatstone liquefied natural gas (LNG) projects (account for over 5% of global LNG capacity) in Australia are likely to face turmoil as workers plan a strike for two weeks from September 14.

A union alliance said on Tuesday that the strike decision resulted from a significant escalation in disputes over pay and conditions, reported Reuters.

Related: Chevron's Australia-Based LNG Facilities May Face An All-Out Strike: Report

The report quoted the union alliance saying, "The Offshore Alliance is escalating protected industrial action to demonstrate that our bargaining negotiations are far from 'intractable'."

If parties cannot find a resolution, the union planned industrial action at the Gorgon and Wheatstone projects seven days from Thursday, September 7.

The strike announcement decision comes amid mediation talks hosted by the Fair Work Commission (FWC), Australia's industrial arbitrator, which began on Monday and planned to run daily this week.

ING expressed that the latest move by the union could be a sign that the mediation talks were not "progressing well, and said, "This is likely to provide some support to gas prices today and comes at a time when there is ongoing maintenance work at the Norwegian gas field, Troll, which has seen flows from Norway falling."

Also Read: Chevron Removes Staff From US Gulf Of Mexico Oil Platforms Amid Hurricane Idalia Concerns: Report

Price Action: CVX shares are trading lower by 0.18% at $164.00 premarket on the last check Tuesday.