Australian gas spat rattles global energy markets

One of Australia’s largest gas producers will launch a last-gasp bid Thursday to halt a looming workers’ strike that has already unnerved global energy markets.

Natural gas prices spiked across Europe Wednesday after workers voted to down tools over working conditions at Woodside’s offshore rigs in Western Australia. The Australian state pumps out more than 10 percent of the world’s LNG exports each month.

Although Europe has largely replenished gas stockpiles disrupted by the war in Ukraine, there are fears that shortages and strong demand in Asia could rapidly put the squeeze on supplies.

Woodside will return to the bargaining table on Thursday in an attempt to stop the strike, which could kick off as early as next week.

Staff on natural gas platforms owned by energy giant Chevron in Western Australia have also told the country’s industrial regulator they are considering walking off the job.

The Australian Workers Union — which represents staff at both Woodside and Chevron — said “hundreds of millions of dollars” in gas exports were at risk.

“It’s in everyone’s best interest to get back to what our members know best, exporting quality Australia gas to the world,” spokesman Brad Gandy said in a statement.

If the talks break down, the union will need to give Australia’s industrial regulator seven days’ notice before stopping work.

The union has threatened strike action as it seeks to secure better conditions for staff working in hazardous conditions on offshore platforms.

Industrial action taken by Australian staff on Shell’s Prelude gas ship lasted for 76 days last year, running up a bill of 650 million US dollars in lost revenues.

News of the strike has spooked European natural gas markets, with one benchmark price index surging by more than 30 percent on Wednesday. (BSS/AFP)