Australia's Offshore Alliance not to file industrial action on NWS LNG platforms

Australia's Offshore Alliance said Aug. 24 it has committed to not file a notice of industrial action as it reached an in-principle agreement with Woodside Energy on an enterprise agreement to cover its platforms that feed gas to its North West Shelf LNG project.

The announcement by Offshore Alliance -- an alliance between the Australian Workers' Union and the Maritime Union of Australia -- followed an update from Woodside earlier in the day that it had made "substantial progress" in talks with labor unions aimed at averting industrial action Aug. 23.

The Offshore Alliance has committed to not filing a notice of protected industrial action, with the final drafting of the agreement being provided by Woodside for review to the union lawyers later Aug. 24, or Aug. 25, it said on its Facebook page Aug. 24.

"Our reps have endorsed the in-principle agreement reached with Woodside and members will be meeting this evening to go through the offer of settlement," it said. "Details of the settlement will be released after our meeting with members tonight."

Woodside Energy said that it had reached an in-principle agreement with the Australian Workers’ Union and Electrical Trades Union and other bargaining representatives on an enterprise agreement covering employees on its North West Shelf offshore platforms.

"In-principle agreement was reached on all claims relating to remuneration and other terms and conditions of employment," the company said in a statement.

"The next steps will be for the enterprise agreement to be finalized and then voted on by employees and approved by the Fair Work Commission," it said, adding that the unions have committed to not filing a notice of protected industrial action, while that process is underway.

That comes after a Woodside spokesperson said earlier Aug. 24 that it was engaging "actively and constructively in the bargaining process."

The comments from the union and Woodside follow lengthy negotiations with the labor unions, while potential industrial action at the 16.9 million mt/year NWS project, together with the Chevron-operated Gorgon and Wheatstone LNG project, has been a key driver in strengthening spot LNG prices in recent weeks.

The Offshore Alliance unanimously endorsed the issuance of a seven working-day notice to Woodside should its bargaining claims for Woodside's platforms not resolve by the end of Aug. 23, the alliance said on its Facebook page Aug. 20.

Industrial action could have started for Woodside's North Rankin Complex, Goodwyn Alpha and Angel platforms that feed gas to its 16.9 million mt/year North West Shelf LNG project after providing seven working days’ notice.

Asia-Pacific spot LNG prices rose Aug. 23, as market participants anticipated potential industrial action at Australian LNG export facilities to have a significant impact and amid the emergence of buying interest via tenders.

Platts, part of S&P Global Commodity Insights, assessed the October JKM at $12.769/MMBtu on Aug. 24, up from $11.174/MMBtu on Aug. 1.