Union workers at the Ichthys LNG project in Australia have begun limited industrial action, raising the specter of broader work suspensions that could disrupt global liquefied natural gas (LNG) supplies. The Offshore Alliance, a coalition of two trade unions, has warned Japan’s Inpex that a strike may be imminent unless the wage dispute is resolved. Workers have signaled they are prepared to escalate measures if Inpex fails to address their bargaining claims.
The dispute centers on wages and conditions at Ichthys, one of Australia’s largest LNG facilities. While the current action is limited, the union’s statement made clear that a full work suspension is on the table. The site accounts for a significant share of Australia’s LNG export capacity, and any prolonged disruption could tighten global supply.
Ichthys, operated by Inpex, is a key supplier to Asian markets, particularly Japan and South Korea. The facility began production in 2018 and has capacity of around 8.9 million tonnes per annum. A strike would compound existing supply pressures in the LNG market, which has faced volatility from geopolitical tensions and fluctuating demand.
Gas prices have climbed in recent days on the strike news, with European benchmarks rising as markets assess the risk of supply disruptions. The dispute comes amid broader labor tensions in Australia’s energy sector, where workers have pushed for higher wages amid rising living costs and strong corporate profits.
The timing of the dispute is critical: winter demand in the Northern Hemisphere is approaching, and any prolonged outage could test the resilience of global LNG supply chains. A resolution remains uncertain, with negotiations expected to continue in the coming days.