Following the beginning of strike action at two major liquefied natural gas (LNG) plants in Australia, prices for natural gas have increased significantly.
The Gorgon and Wheatstone factories owned by Chevron in Western Australia are currently experiencing walkouts because of a disagreement on salary and working conditions.
The two plants owned by the American energy giant account for more than five percent of the total LNG capacity worldwide.
On Friday, the price of wholesale gasoline in the UK increased by around 10%.
According to experts working with Engie EnergyScan, “Prices are up this morning… but in a rather moderate way.”
We have not yet arrived to the point when there is a decrease in supply. They continued by saying that there is “no need to panic in a context where all other fundamentals are rather bearish.”
Following Russia’s decision to reduce the amount of natural gas it exports to Europe, Australia, together with Qatar and the United States, has emerged as one of the world’s leading suppliers of liquefied natural gas (LNG), which has contributed to a general decline in the price of energy around the world.
Chevron and the Offshore Alliance, which is a collaboration between two unions representing energy workers, have been engaged in mediation negotiations at the Fair Work Commission in Australia, which is the country’s industrial arbitration. Workers at key gas facilities in Australia are planning to go on strike.
“Unfortunately, following numerous meetings and conciliation sessions before the Fair Work Commission, we remain apart on key terms,” a spokeswoman for Chevron stated.
After five days of discussions, the spokesperson for the Offshore Alliance, Brad Gandy, stated that Chevron’s position had “barely budged.”
“Offshore Alliance members call on them to change tack so that this dispute can be settled,” he continued.
much if wholesale energy costs have gone down since Russia invaded Ukraine a year ago, there is still pressure on prices to go much higher.
After Saudi Arabia and Russia announced that they will prolong their production cuts through the end of the year, the price of oil increased this week, with Brent crude trading at approximately $90 per barrel.
Methane, or methane combined with ethane, that has been purified of contaminants and cooled to around -160 degrees Celsius to create LNG.
After going through this process, the gas is converted into a liquid and may then be transported in pressurized tankers.
When it reaches its destination, LNG is converted back into gas and utilized for heating, cooking, and power generation in the same manner as any other natural gas.
