Chevron Corporation (NYSE:CVX) workers based at liquified natural gas (LNG) terminals in Australia will begin walkouts next month, in a move likely to weigh on global supply of the fuel.
Two of the oil major’s sites in Australia - Gorgon and Wheatstone - could face stoppages of up to 11 hours a day due to the action, which is set to begin on Thursday, 7 September.
“Members will be participating in rolling stoppages, bans and limitations which will escalate each week until Chevron agrees to our bargaining claim,” a cohort of unions said on Tuesday.
Gorgon and Wheatstone collectively account for over 5% of global LNG capacity, with previous news of the strikes pushing gas prices up significantly this month.
“While we don't believe that industrial action is necessary for an agreement to be reached, we recognise employees have the right to take protected industrial action,” Chevron responded in a statement.
Prospective strike action among Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) workers at sites accounting for another 5% of global supply had also weighed on prices, with the company hinting a deal had been tabled to avoid action last week.
Following the bank holiday weekend, UK gas prices jumped 4% on Tuesday to 91.11p per British thermal unit on the news.
European wholesale gas marked a 3.7% jump to €36.45 over the same period meanwhile.