Business
Australian Tribunal Rejects Inpex Bid to Halt Ichthys LNG Strike
Australia's Fair Work Commission has rejected Inpex's application to halt industrial action at its Ichthys LNG project. The strike involving around 400 workers will continue until June 23 and includes a ban on cargo loading. The tribunal found no evidence that the action would significantly harm the economy or trigger blackouts, while unions continue to push for better pay, career progression and job security.
Tribunal Rejects Inpex Application
Tokyo-based energy company Inpex has failed in its attempt to prevent industrial action at its 8.9 billion-dollar Ichthys LNG project, as Australia's Fair Work Commission decides against halting the process
Inpex set a shutdown would cost the Australian economy billions of dollars in lost export income and increase the risk of blackout. But Fair Work Commission Deputy President Michael Easton rejected the request and ordered both the party to keep negotiating.
Strike continues till June 23
The strike involves 400 oil and gas workers, including those at the Ichthys energy facility, producing 9. 3 million tonnes a year. The strike, which also blocks the loading of LNG and condensate cargoes, is set to continue until June 23. After negotiations stalled, it increased the length of strike periods on Thursday to as much as eight hours before reverting on Friday to two blocks of two hours at the start and finish of each shift.
Bill Townsend, corporate senior vice president for Inpex, said in a statement the judgment is disappointing and that the company was readying an improved offer to workers.
Lack Of Evidence Of Major Economic Damage
After a long hearing, the commission concluded there was no evidence the strike would result in any severe economic damage or endanger Australia's Northern Territory. Easton said production could be shut for as long as a week, but he did not view it as significant disruption because some production would be recouped once cargo loading resumed.
The commission also noted Power and Water Corporation's ongoing blackouts contingency plans, and that Lethbridge had been through bigger outages at the Ichthys facility without any impact.
LNG Cargos At Risk As Talks Continue
The Offshore Alliance, which is made up of the Australian Workers Union, the Maritime Union of Australia and the Electrical Trades Union, is on the case. The demand is that workers want higher pay, career advancement and job security.
The loading ban could fill storage facilities for LNG and condensate within days, Inpex cautioned. A one-week shutdown would mean four LNG cargoes missing scheduled loadings, and two condensate has already missed loading, the company said. Additionally, the company pointed to continuing global energy uncertainty, saying Asian spot LNG prices have soared close to 75% higher since the Iran conflict broke out.
Source: Reuters
Follow Inspirepreneur Magazine for daily global business news.