Escalating Strike Action at Australian LNG Sites Could Hit Supply

Workers at INPEX’s Ichthys LNG project in Australia are set to escalate industrial action after talks with the company failed to make progress, adding to concerns about supply from one of the country’s major gas export projects.

The Offshore Alliance said on June 8 that members voted to extend stoppages to as much as eight hours a day from June 11. The action follows protected industrial action that began at the Ichthys LNG facilities on June 2.

Reuters reported that a Taiwan-bound LNG tanker load was already delayed after the earlier strike action disrupted terminal operations. S&P Global said the escalation could tighten Pacific Basin supply further.

Ichthys is an offshore LNG project operated by INPEX and linked to Darwin through an 890-kilometre gas export system, according to the company.

The next key question is whether INPEX and the Offshore Alliance can reach a deal before the expanded stoppages begin on June 11. If they do not, market participants will be watching for further loading delays and any broader impact on cargo timing.

What happened

The dispute began with protected industrial action at all three Ichthys LNG facilities on June 2. On June 8, the Offshore Alliance said members had voted to escalate the stoppages from June 11 after talks failed.

Why it matters

Ichthys is one of Australia’s significant LNG export projects, and any sustained disruption can affect cargo schedules and nearby Pacific supply flows. Reuters reported that at least one cargo was already delayed, underscoring the operational risk if the dispute escalates further.