Japanese firm Inpex, operator of the 9.3mn t/yr Ichthys LNG project near Australia's northern city of Darwin, has applied to Australia's industrial arbiter the Fair Work Commission (FWC) to stop ongoing strikes at the project.
The company has filed an application to the FWC seeking urgent orders to halt protected industrial action (PIA) at Ichthys sites, Inpex's senior vice-president Bill Townsend said on 10 June.
Inpex is applying under section 424 of the Fair Work Act to suspend or terminate PIA, which cites the risks of "significant damage to the Australian economy or an important part of it" as a reason to end legally permissible strikes. The FWC has scheduled the hearing for 10am AWST (2am GMT) on 12 June.
If Ichthys' production is taken off line by strikers, impacts to LNG buyers and domestic gas customers in the Northern Territory would occur, Inpex said. And this would be significant given current fuel supply constraints.
Unions with members at Ichthys have notified Inpex of further PIA on 11-23 June and the firm is planning accordingly, Townsend said.
Ichthys has loaded three cargoes since strikes commenced, Kpler data show, with the 174,000m³ Archy Vanguard presently berthed at the terminal.
Ichthys impasse
Items yet to be resolved under the bargaining talks include pay, allowances and career progression framework, Inpex said.
Strikes began on 2 June at the project and have escalated to eight hours a day from an initial four hours, while bans on loading and unloading cargoes at the facility will start on 11 June, the Offshore Alliance union said on 8 June.
Up to four cargoes could be lost as a result and replacements will be needed, traders told Argus this week.
The escalated strike action in Australia would likely further tighten supply available to Asian importers and limit the supply buffer for the summer. Spot prices may face further upside as a result, especially as Qatari LNG supply remains off line.
