Industrial action is being considered at the under-construction Pluto 2 liquefied natural gas (LNG) development in Australia, a key part of Woodside Energy's Scarborough gas megaproject, which is targeting its first cargo in the second half of 2026.

Union Action and Negotiations

The Offshore Alliance (OA), a partnership between the Australian Workers' Union (AWU) and the Maritime Union of Australia, filed a Ballot for Protected Industrial Action with the Fair Work Commission (FWC) amid ongoing negotiations with engineering, procurement, and construction (EPC) contractor Bechtel. The Electrical Trades Union (ETU) and other on-site unions have also filed for Protected Industrial Action. The FWC approved the OA's application for a protected action ballot, with voting to be conducted before 4 December. Potential strike action is on the table for 20 December, subject to the outcomes of the application and voting.

Worker Demands and Stalled Negotiations

Negotiations have stalled, leading to this development. The ETU state secretary emphasized that workers are seeking safe rosters, paid time for actual work, proper skills recognition, and superannuation reflecting real working hours, stating these are reasonable expectations that benefit families and communities. The AWU is demanding that Bechtel increase hourly rates by 30% to align the real wages of onshore oil and gas construction crews with those at Chevron’s Wheatstone LNG project. A previous offer by Bechtel to raise wages by an aggregate 8% for 2025 was rejected in a worker vote.

Project Impact and Historical Context

Observers have indicated that the Scarborough project's timeline risks delay due to this development. Bechtel, selected by Woodside in October 2018 as the preferred EPC contractor for the new train at the Pluto facility, has faced similar union challenges in the past, such as in 2014 at the Queensland Curtis LNG project. Woodside has also previously been involved in threats of industrial action, including narrowly avoiding strikes at its North West Shelf project in 2023 after reaching a settlement with labor unions.

Project Status and Details

Woodside declined to comment on the potential industrial action, deferring to Bechtel, which had not responded by the time of publishing. A Woodside spokesperson stated that the Pluto Train 2 is part of the Scarborough Energy Project, which was 91% complete at the end of the September quarter and remains on track for first LNG in the second half of 2026. The expansion also involves installing additional domestic gas processing facilities, supporting infrastructure, and modifications to Pluto Train 1 to process Scarborough's gas. Pluto Train 2 will process Scarborough gas with a capacity of around 5 million tonnes per annum and is highlighted as a key project to help Woodside achieve its planned 40 million tpa of LNG production capacity by 2032.