INPEX files application with FWC to consider suspending Ichthys LNG strike

INPEX filed an application with the Fair Work Commission on June 9 to consider suspending strike action at its operated Ichthys LNG sites in Australia, an INPEX spokesperson told Platts, part of S&P Global Energy.

"INPEX confirms filing an application to the Fair Work Commission under Section 424 of the Fair Work Act 2009," INPEX Senior Vice President Corporate Bill Townsend said in a statement sent to Platts.

"INPEX will be seeking urgent orders from the Fair Work Commission to stop the protected industrial action, so that the parties can continue bargaining to reach an agreement," Townsend said.

He also said that INPEX is continuing to actively engage in enterprise agreement negotiations in good faith and is committed to reaching an equitable and sustainable agreement with employees.

The Fair Work Commission's interest-based bargaining process has been constructive, and while substantial progress has been made, several key items are yet to be resolved, including rates of pay, allowances and the career progression framework, he added.

"Recently, INPEX shared a range of agreement options with bargaining representatives and employees prioritizing different claims for their consideration," Townsend said. "All agreement options result in improvements to overall terms and conditions and the opportunity for substantial pay increases."

He added that INPEX remains focused on maintaining safe operations at Ichthys LNG and, importantly, on ensuring a reliable energy supply to its key trading partners in the Indo-Pacific region amid disruptions to global energy markets.

The comments came as the Offshore Alliance said earlier June 9 that INPEX has taken a hard line toward workers at its operated Ichthys LNG sites as they prepare to escalate industrial action from June 11.

The Offshore Alliance -- a partnership between the Australian Workers' Union and the Maritime Union of Australia -- said that workers have overwhelmingly rejected a series of last-minute offers from the Japanese company and have voted to escalate protected industrial action from June 11.

The decision follows what the union describes as a shift in the company's behavior after weeks of commission-assisted bargaining, the Offshore Alliance said in a statement sent to Platts.

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

The Ichthys project 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.

Platts assessed JKM -- the benchmark price reflecting LNG delivered to Northeast Asia -- for July at $19.243/million British thermal units on June 9, down 34.6 cents/MMBtu, or 1.77%, day over day, as energy prices broadly eased after Iran and Israel halted attacks and US President Donald Trump said both sides were seeking an immediate ceasefire.