Hearing expedited as gas dispute in Australia threatens global supply, prices

Hearing expedited as gas dispute in Australia threatens global supply, prices

THE Australian Fair Work Commission booked a hearing on September 22 after the industrial disputes body agreed to rule on the escalating tensions between Chevron and its workers at its liquefied natural gas (LNG) plants in Western Australia.

The hearing was set after the first of the strikes started last week at its massive Gorgon and Wheatstone sites over pay and working conditions.

On September 22, Australia’s Fair Work Commission, or FWC will launch a full-bench assessment with Chevron and the Australian Workers Union and Electrical Trades Union for bargaining declarations.

The plants supply about 7 percent of the global LNG supply and 47 percent of Western Australia’s domestic gas.

Chevron Australia is in favor of the expedited hearing set on September 22 but the unions argued the date was too soon for them to adequately respond to the company’s submissions.

The company on Monday said it no longer expects to reach a deal with unions and would try an untested legal strategy to stop industrial action at its two massive LNG facilities in Western Australia after weeks of negotiations failed.

FWC will be forced to intervene and impose its will on parties in case both sides fail to renegotiate.

The commission warned that the dispute has a potentially devastating effect on global energy markets which was why it expedited the hearing.

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