INPEX receives notice of protected industrial action at Ichthys LNG

Japan's INPEX on May 18 received a notice from Australian unions of protected industrial action at its operated Ichthys LNG sites in Australia, an INPEX spokesperson told Platts the same day.

"We confirm INPEX received notification of Protected Industrial Action today," the spokesperson said, adding that the company continues to actively engage in good faith in the interest-based bargaining process facilitated by the Fair Work Commission, with negotiations scheduled to continue from May 25.

"INPEX remains focused on maintaining safe operations at Ichthys LNG, reaching a fair and equitable agreement with employees -- and importantly, ensuring a reliable energy supply to our key trading partners in the Indo-Pacific region amid disruption to global energy markets," the spokesperson said.

A spokesperson for the Offshore Alliance told Platts, "The current status of EBA negotiations with INPEX reflects the company's failure to agree to a single key bargaining claim, despite six months of negotiations."

"The work we are now doing in FWC-facilitated bargaining is work which could have and should have commenced in October 2025, when bargaining commenced," the spokesperson said.

"We have made it clear to INPEX that we are not going to cop the short-changing of our bargaining claims simply because management could not be bothered reading our claims for six months," the spokesperson added.

The latest comments from INPEX and the Offshore Alliance come after Australian union members endorsed serving INPEX with a notice of protected industrial action at the Ichthys LNG sites, the Offshore Alliance said May 12, as the FWC-facilitated bargaining meeting ended May 15.

Asia-Pacific spot LNG prices extended gains May 18, rising to their highest level in seven weeks, supported by supply concerns in the region and fears of a deteriorating situation in the Middle East.

Platts, part of S&P Global Energy, assessed JKM -- the benchmark price reflecting LNG delivered to Northeast Asia -- for June at $19.689/million British thermal units on May 18, up 6.63% from $18.465/MMBtu on May 15 and the highest level since $20.338/MMBtu on March 30.

On April 24, Offshore Alliance members endorsed protected industrial action at the INPEX-operated Ichthys LNG sites in Australia, but the parties agreed to engage in six full-day facilitated meetings, overseen by the FWC, over May 5-15.

The INPEX-operated Ichthys project currently has a nameplate capacity of 9.3 million metric tons/year of LNG, 1.65 million mt/y of LPG and 100,000 barrels/day of condensate, with roughly 70% of LNG output destined for Japanese buyers, according to INPEX.

A spokesperson for JERA, which procures 1.54 million mt/y of Ichthys LNG, said May 18, "The impact of this strike will depend on its scale; however, if its effects are prolonged, we are closely monitoring potential influences on LNG supply from the project to our company, as well as on supply-demand dynamics and resource prices in the energy markets."

A spokesperson for Tokyo Gas, which procures 1.05 million mt/y of Ichthys LNG, said May 18, "We will monitor developments with a view to ensuring stable procurement and stable supply."

The Ichthys LNG project shipped a total of 43 LNG cargoes over January-April: 10 cargoes in January, nine in February, 13 in March and 11 in April, according to INPEX on May 13.

INPEX expects Ichthys LNG shipments to average about 10 cargoes/month throughout 2026, as the company plans to conduct connection and commissioning work for the Booster Compressor Module, a low-pressure production facility, from mid- to late 2026.