Japan¡¯s Inpex expects industrial action will disrupt output at its liquefied natural gas (LNG) export plant in Australia.
¡°We anticipate imminent disruption to production at both onshore and offshore Ichthys LNG facilities,¡± Bill Townsend, the company¡¯s senior vice president corporate, wrote in emailed comments. ¡°In the context of current global fuel supply constraints, the disruption is expected to be significant.¡±
A shutdown at the Ichthys plant in the Northern Territory is likely to exacerbate tightness in the global LNG market after the Middle East war curbed supply from Persian Gulf producers Qatar and the United Arab Emirates through the Strait of Hormuz. While the U.S. and Iran are finalizing a deal to reopen the waterway, it remains unclear how quickly flows can be restored.
Ichthys accounts for about 2% of the world¡¯s output, and has the capacity to export around 9.3 million tons a year, mainly to Japan.
Australia¡¯s Offshore Alliance union group plans to extend the current period of industrial action at the Ichthys plant to July 6, after stalled talks with the company on better pay and working conditions for workers at Ichthys. An updated offer is being prepared, Townsend said.
An empty LNG vessel, the Symphonic Breeze, was nearing Ichthys on Tuesday morning, according to ship-tracking data. It is unclear whether it will be able to load.
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