Offshore Alliance files for protected industrial action ballot at Ichthys LNG

Australia's Offshore Alliance applied on April 8 to the Fair Work Commission for a protected action ballot order (PABO) at INPEX's Ichthys LNG sites after more than six months of negotiations, the OA said in a statement sent to Platts, part of S&P Global Energy.

"The application follows growing frustration among the 400 highly skilled offshore and onshore workers across INPEX's Ichthys LNG operations, including facilities in Darwin and offshore in the Timor Sea, where bargaining has failed to deliver meaningful progress on pay, job security and conditions," the OA said.

The move to seek a PABO opens the door for workers to vote on taking protected industrial action, including strikes and work stoppages, if approved by the FWC.

The OA added that it expects "a ballot of members to proceed later this month, with potential industrial action possible as early as May 3rd if members endorse it."

"After six months of negotiations, INPEX has failed to agree to even the most basic claims put forward by its workforce," OA spokesperson and Australian Workers' Union Assistant National Secretary Chris Donovan said in the statement.

The union added that INPEX's proposal would erode real wages over time, freeze key allowances and strip away critical job protections, including safeguards against outsourcing and redundancies.

The OA said the current INPEX enterprise agreement, finalized in early 2022, was the first negotiated by the union with a major gas producer.

Later in 2022, Shell's Prelude FLNG became the second, followed by Woodside Energy and Chevron Australia in late 2023, the OA added.

"INPEX is sending a ship loaded with Australian gas worth about $140 million a pop every couple of days to Japan, about four a week; that's half a billion dollars sailing out of our country on a weekly basis," Donovan said.

INPEX's engagement

In a statement sent to Platts, INPEX Senior Vice President Corporate Bill Townsend said the proposed INPEX-Ichthys Operations Enterprise Agreement 2026-2030 reflects the company's commitment to recognizing its people while securing a strong future for Ichthys LNG to support regional energy security.

"INPEX has issued a proposed enterprise agreement to employees for their consideration, ahead of a formal ballot in accordance with the Fair Work Act," Townsend said, adding that the proposed enterprise agreement offer is fair and competitive.

"INPEX's preference remains to reach an agreement without disruption, and the company continues to engage in the bargaining process," Townsend said.

"INPEX remains focused on maintaining safe operations at Ichthys LNG, reaching a fair and reasonable 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," he added.

Townsend said the Middle East conflict has highlighted Australia's valued position as one of the world's most reliable energy suppliers to key trading partners in the Indo-Pacific region.

In 2025, Ichthys LNG accounted for 8% of both Japan's and Taiwan's LNG import volumes, delivered via long-term sales and purchase agreements, Townsend added.

INPEX has been developing a framework to ensure a stable supply of 9.3 million metric tons/year of LNG at Ichthys by debottlenecking the facility, upgrading the liquification cooling systems and addressing vibration issues.

The Ichthys project, operated by INPEX with a 67.82% stake, involves piping gas from the offshore Ichthys field in the Browse Basin, northwestern Australia, over 890 km (552 miles) to the onshore LNG plant near Darwin, which has an 8.9 million mt/y nameplate capacity. At its peak, the plant can produce 1.65 million mt/y of LPG and 100,000 b/d of condensates.