OA Members Greenlight to Draft the Enterprise Agreements Concerning Chevron’s Wheatstone LNG

Members of the Offshore Alliance (OA), an Australian LNG workers' union, have given their approval to draft enterprise agreements (EAs) that encompass Chevron Australia's Wheatstone LNG, with a capacity of 8.9mn t/yr, the Wheatstone offshore gas platform, and the Gorgon LNG facilities, which can produce 15.6mn t/yr.

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This endorsement came during a mass assembly that took place at 3pm Western Australian time (8am GMT) on 17 October, as confirmed by the union. The approval came at a crucial time, right before workers were scheduled to recommence their strikes at Chevron's facilities on 19 October. This decision followed the unsuccessful discussions that occurred between Chevron and the OA the previous week.

With this newly reached consensus, the OA has chosen to postpone the planned strikes, with the condition that the final EAs receive approval from the staff.

Brad Gandy, the OA spokesperson, shared his sentiments on 18 October, stating that Chevron's members showcased immense patience throughout the negotiation process. He criticized Chevron for continuously revising the details of the proposed agreement even after a mutual understanding had been reached with the OA's negotiation team in late September. He expressed disappointment in Chevron's apparent inability to maintain a transparent deal. However, he also warned that should Chevron decide to modify the terms again, their members would be left with no alternative but to contemplate initiating protected industrial action.

The fallout from the unsuccessful negotiations between Chevron and the unions led to strikes, affecting the Gorgon LNG, Wheatstone offshore gas platform, and Wheatstone LNG from 8-22 September. This labor discord played a part in the erratic behavior observed in Europe's energy market, particularly impacting the Dutch TTF benchmark day-ahead natural gas contract.

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In the context of international consequences, Japan was identified as potentially facing the greatest repercussions from an extended dispute that could disrupt production. This is because the Gorgon and Wheatstone facilities collectively cater to roughly 11.7mn t/yr, which translates to 16% of Japan's total LNG imports.

According to the article by Procurement Resource, members of the Offshore Alliance (OA), representing Australian LNG workers, have approved draft enterprise agreements covering Chevron Australia's Wheatstone and Gorgon LNG facilities. This decision was made during a union assembly on 17 October and comes ahead of planned strikes set for 19 October.

The union has now delayed the strikes, awaiting staff approval of the final agreements. OA spokesperson Brad Gandy voiced concerns about Chevron's frequent changes to the proposed agreement's terms, hinting at possible future industrial action. Previous strikes in September impacted Europe's energy market and Japan's LNG imports, as Gorgon and Wheatstone facilities supply 16% of Japan's total LNG.