Key facts
- The Australian Workers Union will halt LNG cargo loading at INPEX from June 11 through June 23.
- The Ichthys LNG project accounts for approximately 2% of global LNG output.
- Industrial action has begun at the Ichthys LNG project in Australia, delaying the LNG carrier Pacific Breeze.
- A potential strike at Norway's offshore oil and gas platforms has been averted after a wage deal was reached.
- The main union at Colombia's Ecopetrol has launched a 24-hour strike.
- The USO union at Ecopetrol is demanding substantial pay increases, reduced working hours, and enhanced benefits.
- Amigo LNG is increasing contracted volumes from a Mexican export project to 1 million tonnes per annum.
- BHP has trialed Australian tallow-based biodiesel onboard a bulk carrier in Singapore.
Global energy markets are experiencing a series of labor disputes and supply chain adjustments. In Australia, the Australian Workers Union (AWU) has initiated a halt on LNG cargo loading at INPEX facilities, scheduled from June 11 through June 23. This action follows previous industrial disputes at the Ichthys LNG project, a significant contributor to global supply, accounting for approximately 2% of worldwide LNG output. The AWU's action is expected to delay cargo loadings, as seen with the Pacific Breeze LNG carrier, which experienced delays due to earlier industrial action involving morning and evening work stoppages. These disputes stem from failed negotiations between unions and operator Inpex regarding wages and working conditions.
Meanwhile, a potential strike that threatened Norway's offshore oil and gas sector has been averted. Wage negotiations between the Norwegian Oil and Gas Association and the Industri Energi union concluded with a reached agreement, preventing disruptions at Western Europe's leading oil and gas producer. This resolution comes at a critical juncture for global energy supplies, particularly for European natural gas. In Colombia, however, the primary union at the state-run oil company Ecopetrol, the USO union, has commenced a 24-hour strike. This action is a result of a stalemate in collective bargaining negotiations, with the union pushing for substantial pay increases, reduced working hours, and improved benefits.
These labor actions underscore the ongoing volatility in the energy sector. The Ichthys LNG project's contribution to global supply makes any disruption noteworthy. The averted strike in Norway highlights the delicate balance in energy negotiations, especially given Europe's reliance on its production. The strike at Ecopetrol points to persistent labor demands within national oil companies. In separate but related trade news, Amigo LNG, an Australian portfolio company, is increasing its contracted export volumes from a Mexican project to 1 million tonnes per annum, indicating growth in LNG trade flows. Additionally, mining group BHP has trialed Australian tallow-based biodiesel for use on a bulk carrier in Singapore, marking a first for such a fuel in the region.