Australia's FWC to hold June 12 hearing on INPEX Ichthys LNG strike application

Australia's Fair Work Commission is scheduled to hold a hearing on INPEX's application regarding protected industrial action at the Ichthys LNG facilities on June 12, a FWC spokesperson told Platts, part of S&P Global Energy, on June 10.

"An application under s.424 of the Fair Work Act was received yesterday. B2026/623 -- application by INPEX Australia Pty. Ltd. trading as INPEX is now scheduled for hearing before Deputy President [Michael] Easton at 12:00 pm (Sydney time) on Friday, June 12," the FWC spokesperson said.

"Pursuant to s.424(3) of the act, the commission is required to, as far as practicable, determine the application within five days after the application is made," the FWC spokesperson said.

The development comes as 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.

"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 on June 9.

"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 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.

Escalating strike

The Offshore Alliance said earlier on June 9 that INPEX had taken a hard-line stance toward workers at its operated Ichthys LNG sites as they prepared to escalate industrial action from June 11.

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

The decision follows what the union described 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 9.

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

Meanwhile, the LNG carrier Archy Vanguard arrived at the Ichthys LNG terminal near Darwin at 0221 GMT on June 10, according to S&P Global Commodities at Sea, ahead of the planned escalation instrike action at the Ichthys facilities from June 11.

The Kita LNG departed the Ichthys LNG terminal at 1907 GMT on June 9 after arriving at 0551 GMT on June 8, CAS data showed.

This followed the departure of the LNG carrier Pacific Success from the Ichthys LNG terminal at 0122 GMT on June 8 after arriving at 1722 GMT on June 5, according to CAS.

Earlier, the Maran Gas Lindos departed the terminal at 1337 GMT on June 5 after arriving June 4 -- one day after the Pacific Breeze departed on June 3, CAS data showed.

Asian LNG prices fell below $19/MMBtu on hopes of de-escalation in conflict between the US and Iran even as demand from South Asia and Southeast Asia remains strong for downstream requirements.

Platts assessed JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, for July at $18.907/MMBtu June 10, down 33.6 cents/MMBtu, or 1.75% day over day.