Australian Regulator Denies Inpex Request to Halt LNG Strike

Key facts

• The Australian Fair Work Commission denied Inpex's request to halt a strike at the Ichthys LNG facility.
• The regulator stated the disruption was not significant enough to warrant suspension of operations.
• Workers at the Ichthys facility escalated their strike action to up to 8 hours of stoppages per day.
• The escalation began on June 11.
• The Ichthys facility has a production capacity of 9.2 million tons per year.

The Australian Fair Work Commission has rejected a request from Inpex, the operator of the Ichthys LNG facility, to suspend an ongoing strike. Inpex had argued that the industrial action would adversely affect the Australian economy, but the commission's deputy president, Michael Easton, stated that the disruption was not significant enough to warrant suspension, noting that some lost production could be recovered once a loading ban is lifted.

Workers at the Ichthys facility escalated their strike action on June 11, increasing work stoppages to up to 8 hours per day. This development could exacerbate existing tightness in global gas markets, which have already been impacted by disruptions in the Persian Gulf. Asian LNG prices have risen 75% since late February.

Meanwhile, QatarEnergy anticipates approximately $20 billion in annual lost revenue due to damage at its Ras Laffan LNG complex, with repairs potentially taking up to five years. This situation underscores the importance of supply from other regions, such as Australia, for global markets.