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Woodside Energy Gas Plants Face Industrial Action; Supply Risks Emerge

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Workers at Woodside Energy's (WDS) maintenance contractor UGL will take industrial action from May 20 at Karratha and Pluto gas facilities in Australia over a wage and working conditions dispute, the Offshore Alliance union said on Friday.

Inpex's Ichthys LNG facility is also facing the prospect of industrial action, with labor unions considering issuing a strike notice if an agreement is not reached at some point on Friday, according to multiple media outlets.

Exports of liquefied natural gas from these facilities could be affected, triggering a wider supply disruption, particularly as shipments through the Strait of Hormuz remain largely restricted, Bloomberg said.

Australian LNG producers are already running close to operational limits to increase supply, the news agency reported, as Asian buyers seek alternative cargoes in response to the disruption to energy flows resulting from the Middle East conflict.

Woodside's Karratha gas plant has an export capacity of 14.3 million tons per annum. Pluto LNG currently exports about 5 mtpa, which could double to around 10 mtpa once the second train becomes operational. Inpex's Ichthys LNG plant adds another 9.3 mtpa to global supply.

The companies did not immediately respond to' requests for comment.

In 2023, strikes at Chevron's (CVX) facilities in Australia had resulted in LNG price spikes in Europe and Asia, due to the prospect of reduced gas exports, Bloomberg reported.

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