Australia’s LNG Strike Vote Closes at Major Inpex Gas Plant
Synopsis
in Darwin is set to close on April 24, 2026. Following the rejection of a "substandard" pay deal, 430 unionized workers are deciding whether to begin industrial action. With the ongoing Iran war already limiting 20% of global gas supplies, a strike could severely impact Japan, which relies on the 9.3 million-ton-a-year plant for its summer energy security. As global energy markets tighten, all eyes are on the Offshore Alliance to see if a deal can be reached before production is halted.
Stopwork vote tomorrow at Inpex’s Ichthys LNG plant in Darwin a critical strike vote is to close today. Workers have opted to take industrial action, after overwhelmingly voting against a recent pay offer, with the move posing risks to Japan’s energy supplies amid extreme global turmoil.
Key Highlights
- 430 workers join Ichthys LNG plant strike vote close today.
- Workers last week turned down an offer on pay, saying it was below industry standards.
- Japan is the primary purchaser, dependent on this facility for its summer energy supply.
- The Iran war continues, along with shipping disruption causing tightness in global energy supplies.
- The Offshore Alliance is about 95% of the workforce at the facility.
Results of the strike vote could come as early as Friday
The ballot for protected industrial action at Inpex’s Ichthys facility closes midmorning on the Friday of April 24, 2026. The No vote came a week after 440 eligible employees rejected an offer from the Japanese gas giant. The Offshore Alliance, a union group represented by the Maritime Union of Australia and Australian Workers Union, said in its current form, the agreement sets pay and working conditions well below what is currently standard across industries. A favourable vote would then give the union a legal right to initiate strikes or work stoppages.
Why the Ichthys plant is critical to energy around the globe
The overall size of the facility is one reason why there is significant concern in Tokyo and Perth. The Ichthys plant generates 9.3 million metric tons of LNG on an annual basis and is a linchpin in the Australian export industry. Japan’s biggest supplier of natural gas, Australia is now preparing for peak summer demand from many Japanese utilities. The war will already be forcing over 20% of global LNG supply offline, and with the Strait of Hormuz still a red flag risk zone, explosions at Darwin could send global energy prices spiking on the spot.
From a Pro and the 2023 Legacy
Market watchers are comparing it with the 2023 strikes at Chevron’s Wheatstone facility, which pushed international gas markets into turmoil. With an “Iran war” backdrop, the current situation is judged to be even more highly precarious at present with bolstered global supplies than in years before The Offshore Alliance and experts argue that the “cost of a shutdown” for Inpex (and its Japanese customers) is far greater than the cost to meet the union’s wage demands. In the event of a strike, Japan might have to tussle with other countries over high-cost “spot market” gas to ensure its power grid remains stable.
FAQs
1. What are the reasons behind workers striking?
They are dissatisfied with Inpex’s terms of pay and working conditions. The union says the offer falls short of what workers at comparable companies earn
2. How does this affect Japan?
Japan is the largest buyer of this gas from this plant. Because it is all but summer there, they use that gas to run air conditioning and to keep businesses powered.
3. How much gas does this plant make annually?
Its annual LNG production is approximately 9.3 million metric tons. A whole lot of money that helps maintain energy prices in the global marketplace.
4. What is the Offshore Alliance?
It is an alliance of two Australian unions that collaborate to represent workers on offshore oil and gas rigs.
5. What happens if they vote yes to strike?
That doesn’t mean we immediately go on strike. It also provides the legal basis for the union to later call a strike if it is unable to reach a better deal with Inpex.
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