Australian LNG Strike Threatens Global Supply Amid Qatar Output Lag

Workers at Inpex's Ichthys LNG facilities in Australia have escalated their strike action, increasing daily stoppages to up to 8 hours, a move that threatens significant disruptions to global gas supply. Bill Townsend, senior vice president corporate at Inpex, stated that the company anticipates imminent disruption to production at both onshore and offshore facilities.

The industrial action, which began on June 3, has already affected some LNG loadings, raising concerns about potential supply drops from Australia, the world's second-largest LNG exporter. The Australian Fair Work Commission recently denied Inpex's request to halt the strike at the 9.2-million-ton facility.

This potential reduction in Australian supply comes at a critical time, as QatarEnergy, the world's largest LNG exporter, has halted output since early March. Sources indicate that QatarEnergy has informed customers it could restore about 50% of its production capacity within a month of safe navigation through the Strait of Hormuz being restored, with a potential return to 80% capacity within two months, pending a U.S.-Iran agreement to reopen the vital shipping lane.