Sources: Inpex has shut down one LNG train in the Australian Ichthys plant because of a strike
?Japan’s Inpex shut down one of its two liquefied gas production trains?at the Ichthys facility in?Australia because of a strike. Two?people?with?knowledge of the matter?said on Tuesday.
As global LNG supplies tighten after the U.S.-Israeli war against Iran, the closure of Australia's largest LNG plant will likely affect exports.
Inpex declined to comment. However, Senior Vice President Bill Townsend stated in a late-night statement that the company expects an "imminent interruption to production?at both onshore & offshore Ichthys LNG Facilities".
A tribunal on Sunday rejected Inpex’s request to end the strike, and?mandated that a new contract of employment be drafted.
Australia's Offshore Alliance - which includes the Australian Workers Union (AWU) and the Maritime Union - announced on Monday that it would extend its industrial action to July 6, after a "new employment agreement" could not be finalised. Electrical Trades Union also joins the strike.
According to testimony given to the Fair Work Commission on Saturday, up to seven LNG cargoes may be delayed. Inpex had sought to stop the strike for national interest reasons.
Damien Chandler, a superintendent of onshore operations, stated that 'tank peaks' for LNG could be reached by 1 pm local time (0300 GMT), on Wednesday, and one day later, for condensate.
The Bladin Point plant near Darwin has a production capacity of 9.3 millions metric tons per year.
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Ryosei Acazawa, the Industry Minister of Japan, said that on Tuesday.
According to Japan Organization for 'Metals and Energy Safety (JOGMEC), the majority of long-term LNG purchasers from the project will be Japanese utilities including equity partners, Kyushu Electric Power, and Tokyo?Gas.
Japanese companies collectively?purchase approximately 5.7 million tonnes per year, including Inpex’s offtake volume. Helen Clark reported from Perth, Yuka Obayashi contributed additional reporting in Tokyo and Emily Chow was in Singapore. Florence Tan wrote the article. Christopher Cushing edited it.
(source: Reuters)
