Chevron Corporation (NYSE:CVX) announced on Monday that full production had resumed at its Wheatstone liquefied natural gas (LNG) facility in Western Australia, which suffered a fault last week, even as union members continue strikes at the site.
The fault cut production at the facility by about one-fifth.
Chevron noted that scheduled LNG deliveries from the Wheatstone gas facility were not impacted by the fault that occurred on September 14 and domestic supply was also unaffected.
"During this time LNG continued to be produced at approximately 80% of usual rates, and vessel loading continued," a company spokesperson said in a statement.
Workers began 24-hour strikes over the weekend at Chevron’s Wheatstone and Gorgon plants, which exported about 7% of global LNG supply last year.
The strikes followed six days of brief work stoppages and limited bans on certain tasks.
Chevron is using some non-unionized workers to operate its projects, Bloomberg reported.
The media outlet added that a potential threat of lower gas exports from one of the world’s biggest suppliers has sent global prices higher, as it threatens greater competition for LNG during peak demand in the northern hemisphere winter.
Chevron has asked Australia’s industrial tribunal, the Fair Work Commission, to intervene in the ongoing dispute over wages and conditions in a bid to end the strikes.
Shares of Chevron rose 0.8% to $167.88 in early Monday trading but have fallen 4% year to date.
Contact Sean at sean@proactiveinvestors.com