- European gas prices shoot up due to Chevron's Australian facilities' strike.
- Negotiations between Chevron and union representatives hit a deadlock over pay and job security.
- Analysts warn of potential prolonged market turbulence in European gas.
European gas prices experienced a sharp rise on Friday, following a strike by workers at Chevron’s Australian natural gas sites. This sudden industrial move emerged from the ongoing discussions this week, attempting to address concerns about pay and job stability. Sadly, these conversations didn't produce a resolution, leaving a cloud of uncertainty hanging over the facilities.
For now, there's no word on when Chevron, the U.S. energy heavyweight, might be back at the table with the unionized workforce of their liquefied natural gas projects. As it stands, workers are set to periodically halt operations, culminating in a two-week full-blown strike by next Thursday. Amidst all this, European benchmark gas prices, specifically at the Dutch Title Transfer Facility (TTF) hub, surged by 10%, hitting 36 euros ($38.50) per megawatt hour.
Representatives from Chevron Australia expressed disappointment, stating that despite several sessions with the Fair Work Commission (Australia's independent body for workplace relations), the parties remain in disagreement. The bone of contention? The union's demand for terms that Chevron Australia perceives as "exceeding" the industry's standards.
This dispute has heightened concerns, given Australia's pivotal role as a leading LNG exporter. Recent happenings have nudged European gas prices upward, with analysts predicting that this trend might continue. Last month, prices reached 43 euros but decreased as hopes for a resolution between Chevron and the unions seemed possible. However, they are still significantly lower than last year’s unprecedented peak of 300 euros.
Rounding up, the Offshore Alliance, which champions the workers at Chevron's facilities, aired their grievances via a Facebook post. They criticized Chevron's negotiation tactics and expressed their determination, hinting at further intensified actions.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.