Union Negotiations at Inpex's Ichthys LNG Project

Unionised workers at Inpex's 9.3 million tonnes per annum Ichthys liquefied natural gas (LNG) project in Australia have elected not to proceed with planned strike action on 27 and 28 May, following progress in bargaining talks over wages and conditions. The Offshore Alliance (OA), a joint venture of the Australian Workers Union (AWU) and Maritime Union of Australia (MUA), confirmed it had withdrawn the threatened strike action due to advancements in negotiations.

Background and Bargaining Process

Only the previous week, the OA had served notice of Protected Industrial Action (PIA) on Japanese operator Inpex at its Ichthys onshore and offshore facilities after talks over pay and conditions had broken down. The facilities involved include the Ichthys central processing facility, the Ichthys floating production, storage and offloading vessel, and the Ichthys LNG liquefaction plant. Reuters reported that 326 of 346 union members had initially voted for strike action.

Company Response and Ongoing Negotiations

An Inpex spokesperson confirmed that the company had been advised PIA would not take place on the specified dates. Inpex stated it remains focused on maintaining safe operations at Ichthys LNG, reaching a fair and equitable agreement with employees, and ensuring reliable energy supply to key trading partners in the Indo-Pacific region amid global energy market disruptions. The company added that it continues to actively engage in good faith in the interest-based bargaining process facilitated by the Fair Work Commission, with negotiations ongoing.

Broader Context and Related Developments

Australia is Japan's largest LNG supplier, and Japan faces a possible supply shortfall as it enters summer months when demand for air conditioning increases. The Ichthys LNG project at Darwin has a capacity of 9.3 million tonnes per annum from two existing trains, with Inpex committed to adding a third liquefaction train. Meanwhile, Upstream has approached Woodside Energy for comment on whether sub-contractors of CIMIC Group subsidiary UGL have initiated their own threatened strike action at Woodside's Karratha and Pluto gas and LNG facilities in Western Australia.