Ichthys LNG strike expected to start next week

INPEX has received notice of protected industrial action at its Ichthys LNG project in Australia, according to reporting published on May 18, raising the possibility of strike action beginning next week.

The dispute comes after bargaining talks failed to settle key issues between the company and workers represented by the Offshore Alliance, which includes the Maritime Union of Australia and the Australian Workers' Union.

Reuters reported last week that talks to avert industrial action were entering their final day, with unions warning they could issue a strike notice if no agreement was reached. Later reporting said the notice would allow strike action to run from May 27 to June 10, and INPEX said it remains engaged in Fair Work Commission-facilitated bargaining.

INPEX has said further talks are scheduled for May 25. The company has not indicated whether the dispute has already affected shipments.

Any disruption at Ichthys LNG is being watched closely because the project has major Japanese customers, making it a potential supply risk for the wider LNG market if industrial action proceeds.

The key near-term question is whether the parties can reach a deal before the reported strike window begins or whether the notice will be followed by work stoppages next week.