Bloomberg reported the talk between the three-billions dollar gas giant, Chevron and its Australian liquefied natural gas (LNG) worker unions has broken down on Friday (8 Sep) afternoon as the strike still continued on. The offshore alliance representing the unions, considered the package from Chevron as underwhelming and there’s still no resolution at the moment.
The stoppage strike started on Thursday and will continue until 29 September. Possibly increasing world’s natural gas prices for more. Meanwhile, Woodside Energy Group’s North West Shelf plant, another Australian LNG exporter, reached an agreement with its worker union last month.
Chevron’s Australian LNG plants, Gorgon and Wheatstone together supplied around 7% of the world’s LNG last year. During last year, Europe gas prices jumped more than 7% as many Eurozone countries switched from Russian gas pipelines. The gas fields and pipeline maintenance in Norway has already impacted Europe’s gas supplies. Even with 90% replenished gas reserves it’d still be a problem for Europe, according to Al Jazeera.
The US Natural Gas Futures jumped by 4% to $2.6 from $2.5 yesterday, while Dutch Gas Futures also jumped by 6.8%, trading at €33 per Mega Watt-hour in yesterday evening (local time), and it has been over ten times the current price during European gas crisis in last year August. Meanwhile, Chevron stock price (NYSE : CVX) is still at $166 per share since the start of the week compared to the lowest point around $72 during the pandemic lockdown, the long run price continues the uptrend for over three decades.
