The strike that shook the natural gas market grows

Workers at Chevron’s liquefied natural gas (LNG) facilities in Australia have announced they plan to extend their strike and hold work stoppages lasting hours or an all-out strike.

This increases the risk of production disruptions at facilities that account for more than 5 percent of global LNG supply.

Workers at the Gorgon and Wheatstone plants had been protesting briefly for six days after negotiations with Chevron failed.

Unions had said they would likely stop work completely and increase pressure on the company starting today. A union leader said they will evaluate the next step every 12 hours.

In a research note sent to clients, Goldman Sachs said strikes lasting 24 hours will pose a supply risk, but the possibility of a prolonged disruption that will cause a long-term increase in natural gas prices is low. (REUTERS)