Wholesale gas prices fell on news that Chevron Corporation (NYSE:CVX) workers from two key Australian liquified natural gas terminals would end strike action.
After periodic walkouts began from 8 September, union consortium Offshore Alliance reassured on Friday that industrial action had been suspended following an offer from Australia’s labour regulator.
The price of gas fell 2.3% to 97.25p per British thermal unit on Friday morning as a result.
“At a late-night mass meeting members endorsed the latest offer which incorporates the Fair Work Commission's recommendations,” an Offshore Alliance spokesperson said.
“The Offshore Alliance will now work with Chevron to finalise the drafting of the agreement and members will soon cease current industrial action.”
Chevron’s Gorgon and Wheatstone plants, where workers had been taking strike action, are said to account for around 5% of the world’s liquified gas supply.
News of the strikes had previously pushed wholesale prices up, with gas now sitting roughly 58% higher than mid-July.