On Tuesday, a union alliance stated that Chevron workers at liquefied natural gas projects in Australia plan a two-week strike.
Its stock price rose by 1.99% to $164.30 per share on September 01. Likewise, it is expected to climb by 0.05% to $164.50 apiece in the upcoming session.
The decision was encouraged by mediation talks from the Fair Work Commission (FWC), Australia’s industrial arbitrator. It started on Monday and is set to run every day this week before the union calls work suspensions.
According to the union alliance, the Offshore Alliance intensified protected industrial action to show bargaining negotiations are controllable. However, Chevron did give an immediate response despite requests.
Moreover, the threat of the workers agitated global natural gas markets. They are still unstable amid the Russia-Ukraine conflict, which witnessed curbed supplies and higher prices.
In addition, Gorgon and Wheatstone, both operated by Chevron, hit 7.00% of the global LNG supply.
Also, a spokesperson from the company said the parties started conciliation conferences after some staff refused its pay package proposal. Last week, it mentioned that it applied to the FWC to seek help in the conflict.
Based on the most recent update, the Offshore Alliance reported that work bans could last until the month’s end. It also said Chevron would be pushed to agree to their conditions.
US Supports Chevron on Cyprus Dispute
Washington got involved in the conflict between Cyprus and global companies led by Chevron on how to develop gas fields. According to experts, it defended the company’s strategy to connect it to Egypt.
The consortium led by Chevron suggested linking the Aphrodite gas field using a subsea pipeline. As a result, gas could be sold in the domestic market or be liquefied and exported to Europe. Besides, it was significantly cut off from Russian supplies.
Furthermore, the Cypriot Energy minister confirmed the government’s rejection of the latest plan. Also, it refused the previous proposal to build a floating gas processing plant. It was supposed to lie a hundred miles southeast of Cyprus.
