Offshore Alliance to extend Ichthys LNG strikes to 8 hours/day from June 11

Australia's Offshore Alliance said June 8 that its members have endorsed extending strike action at the INPEX-operated Ichthys LNG sites in Australia to eight hours a day from June 11.

"Last night, members endorsed work stoppages escalating to eight hours per day, and we will be loading up a stack of work bans on Thursday," the Offshore Alliance said in a Facebook post.

The move comes after the Offshore Alliance -- a partnership between the Australian Workers' Union and the Maritime Union of Australia -- said June 2 that its members would begin protected industrial action across all Ichthys LNG facilities for four hours a day from June 2 to June 10, with another notice covering June 11 to June 23.

"Whilst the INPEX HR bosses have completely butchered these negotiations by failing to agree to a single bargaining claim in the first seven months of bargaining, the INPEX bosses in Tokyo have signed off on extensive protected industrial action," the Offshore Alliance said June 8.

INPEX has yet to respond to requests for comment from Platts, part of S&P Global Energy.

The 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 about 70% of LNG output destined for Japanese buyers, according to INPEX.

Cargo loading schedules at the Ichthys LNG facilities may be disrupted following a recent delay, a Japanese trader said.

Meanwhile, the Kita LNG arrived at the Ichthys LNG terminal near Darwin at 0551 GMT on June 8, according to S&P Global Commodities at Sea, amid an ongoing partial strike action at Ichthys facilities.

The arrival follows the departure of the LNG carrier Pacific Success from the Ichthys LNG terminal at 0122 GMT on June 8, after it arrived at 1722 GMT on June 5, according to CAS.

Prior to that, the Maran Gas Lindos departed the terminal at 1337 GMT on June 5, after it arrived on June 4 -- a day after the Pacific Breeze departed on June 3, according to CAS.

Platts assessed JKM, the benchmark price reflecting LNG delivered to Northeast Asia, for July at $19.589/million British thermal units on June 8, up 3.31% from June 5.

Market sentiment strengthened after reports of an exchange of fire between Israel and Iran -- the first since the early-April ceasefire -- heightening geopolitical risk.

Market participants also continued to monitor the extended industrial action at INPEX's Ichthys LNG project, with potential supply disruptions lending further support to spot prices.

"In light of heightened international tensions and the continued uncertainty and fluctuations, an early resolution is hoped for," said Hiroshi Hashimoto, senior fellow for LNG and gas at the Institute of Energy Economics, Japan.

"Spot LNG prices are holding steady at high levels, and there are concerns that they may rise further in the future. Given the situation, it is hoped that serious negotiations and, as appropriate, mediation by the Australian authorities will take place," Hashimoto added.