Workers at Inpex’s Ichthys liquefied natural gas (LNG) facility in northern Australia are set to begin industrial action from May 27, after union representatives issued formal notice following stalled negotiations over pay and working conditions.
The Offshore Alliance, which represents the Maritime Union of Australia and the Australian Workers Union, said the strike could occur anytime between May 27 and June 10 after months of bargaining failed to produce progress.
The move follows a vote last month in which 326 out of 346 union workers at the 9.3 million metric-ton-per-year LNG project near Darwin supported strike action, pending negotiations held throughout May.
Union officials accused Inpex of failing to adequately address workers’ claims, saying the company had neglected bargaining proposals for several months.
Despite the strike notice, the union said discussions with Inpex would continue during meetings scheduled for May 25 and 26 in an effort to reach an agreement.
Inpex, the Japanese energy company operating the Ichthys project, had not responded to requests for comment at the time of reporting.
Any disruption to output from the facility could tighten global LNG supplies further, as energy markets remain under pressure from geopolitical tensions linked to the Iran conflict.
The potential supply risks are being closely monitored by Japanese gas and power utilities, which are major buyers of LNG from the Ichthys project.
Australia remains Japan’s largest LNG supplier, with demand expected to rise as hotter summer temperatures increase cooling needs across the country.
Extended industrial action at one of Australia’s key LNG export facilities could therefore intensify concerns over energy security and supply stability in Asia.