Offshore Alliance cancels May 27-28 strike at Ichthys LNG due to progress in bargaining

The Offshore Alliance has canceled its planned strike action at the Ichthys LNG sites in Australia over May 27-28, an Offshore Alliance spokesperson told Platts, part of S&P Global Energy, on May 26.

"The OA has pulled strike action for tomorrow and Thursday due to progress made in bargaining," the spokesperson said.

INPEX continues to actively engage in good faith in the interest-based bargaining process facilitated by the Fair Work Commission, with negotiations continuing, an INPEX spokesperson said May 26.

"We confirm INPEX has been advised Protected Industrial Action will not take place on 27 and 28 May," the INPEX spokesperson said. "INPEX remains focused on maintaining safe operations at Ichthys LNG, reaching a fair and equitable agreement with employees – and importantly, ensuring reliable energy supply to our key trading partners in the Indo-Pacific region amid disruption to global energy markets."

The comments came after Japan's INPEX received a notice on May 18 from Australian unions about protected industrial action at its operated Ichthys LNG sites, an INPEX spokesperson told Platts the same day.

"The Offshore Alliance lawyers have given INPEX formal notice of protected industrial action commencing on Wednesday, May 27," the Offshore Alliance, a partnership between the Australian Workers' Union and the Maritime Union of Australia, said in a Facebook post May 19.

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.