• Sunday, June 23, 2024
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Natural gas prices surge as workers strike at Australian LNG plants

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Natural gas prices have jumped after strike action kicked off at two major liquefied natural gas (LNG) facilities in Australia.

In a row over pay and conditions, the walkouts are taking place at Chevron’s Gorgon and Wheatstone plants in Western Australia.
The US energy giant’s two plants account for more than 5% of global LNG capacity.
On Friday, wholesale gas prices in the UK rose by about 10%.

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“Prices are up this morning… but in a rather moderate way,” said analysts at Engie EnergyScan.

“We have not yet reached the stage of a drop in supply. So, no need to panic in a context where all other fundamentals are rather bearish,” they added.

Australia is one of the world’s largest exporters of LNG, along with Qatar and the US, and its supplies have helped to cool global energy prices after Russia began cutting its natural gas supplies to Europe.