Unions have announced strike action at Chevron gas operations in WA. 

Unions, including the Australian Workers Union and Maritime Union of Australia, have issued notices of rolling stoppages and work bans set to commence next week at Chevron's Gorgon and Wheatstone LNG projects in Western Australia. 

This action is set to escalate weekly.

The Offshore Alliance, representing 500 workers at Chevron's west coast facilities, served protected action notices on Monday, indicating that the strikes will initiate on Thursday, September 7. 

The impacted facilities encompass the Gorgon and Wheatstone onshore processing plants, along with the Wheatstone offshore platform, collectively responsible for approximately 7 per cent of globally traded LNG.

In response to this news, Dutch front-month futures, Europe's gas benchmark, surged by 10.5 per cant to €38.41 a megawatt-hour. 

This spike comes amid heightened concerns regarding labour disputes in Australia, raising worries about constrained global supplies, especially as Europe braces for the winter season.

Last week, Woodside Energy successfully averted strikes through negotiations with unions, preventing the shutdown of Australia's largest LNG production plant. However, it remains uncertain whether Chevron can achieve a similar outcome.

Shell encountered a prolonged shutdown lasting over two months at its Prelude floating LNG project off Western Australia last year due to a similar industrial dispute.

Unions declared that their members would participate in rolling stoppages, bans, and limitations, with escalation planned until Chevron accedes to their bargaining demands. 

They criticised Chevron's bargaining efforts, labelling them “the most inept and incompetent performance we have seen to date from any of the outfits we have dealt with since the formation of the Offshore Alliance in October 2018”.

Unions are seeking to establish benchmark industry conditions, gain control over rosters, and impose restrictions on contractors.

Unlike the Woodside LNG platform workers, Chevron has chosen to bypass unions at its Gorgon and Wheatstone plants and submit its proposed offer to a direct staff vote. 

A previous attempt to do the same for the Wheatstone platform resulted in a mere 2 per cent “yes” vote.

The Gorgon and Wheatstone plants are significant gas suppliers to the Western Australian domestic market, and any shutdown would affect various industrial and mining operations across the state. 

According to EnergyQuest, these facilities accounted for 29 per cent and 18 per cent of WA domestic gas supplies, respectively, in the March quarter of 2023. Domestic customers include Newcrest, a gold miner, and South32's Worsley alumina refinery.