• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 19 hours How Far Have We Really Gotten With Alternative Energy
  • 4 days Can Solar Panels Regenerate Prairies?
  • 4 days Canada’s Carbon Capture Ambitions Have Hit A Roadblock
Tandem Solar Cells Poised To Revolutionize Energy Market

Tandem Solar Cells Poised To Revolutionize Energy Market

Researchers from Kaunas University of…

Tight Diesel Markets Could Add To Inflation Woes

Tight Diesel Markets Could Add To Inflation Woes

Distillate markets are tightening again,…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

European Natural Gas Prices Slump On Hopes Australia Will Avoid An LNG Strike

  • European natural gas prices fell back on Wednesday after jumping higher on Tuesday over fears of a strike at LNG facilities in Australia.
  • The three LNG sites threatened by industrial action account for 10% of global supply.
  • Woodside Energy representatives claimed that the company had “constructively addressed” the concerns of employees.

Europe’s benchmark natural gas prices slumped on Wednesday after settling on Tuesday at the highest level since April, amid market tensions over a labor dispute threatening LNG supply from Australia.

The front-month futures at the Dutch TTF hub, the benchmark for Europe’s gas trading, had plunged by 12% to $40.94 (37.86 euros) per megawatt (MWh) as of 11:29 a.m. GMT on Wednesday, as workers and LNG facility owners in Australia discuss a possible resolution to the dispute about pay and work conditions.

The contract rose by more than 5% on Tuesday, settling at the highest levels since April this year. The extreme volatility suggests that market participants are anxiously expecting any outcome of the talks between Woodside and trade unions over pay and work conditions.

Woodside Energy representatives are meeting on Wednesday with union representatives to discuss the issues over which workers had raised concerns.

Woodside said on Tuesday that it had “constructively addressed” the concerns of the employees.

On Sunday, the unions at Woodside’s North West Shelf offshore gas platforms said they could go on strike as early as September 2 if the workers’ bargaining claims for the Woodside Platforms are not resolved by Wednesday, August 23.

Woodside’s North West Shelf is the largest LNG production project in Australia, with a capacity of 16.9 million tons annually, followed by Chevron’s Gorgon, which has a capacity of 15.6 million tons. Wheatstone, also operated by Chevron, can produce 8.9 million tons of LNG annually. The three LNG sites threatened by industrial action account for 10% of global LNG supply.

“Natural gas markets should get more clarity around Australian LNG supply over the next 24 hours, given that end-of-day Wednesday is the deadline that workers at Woodside’s North West Shelf gave to come to a deal,” ING strategists Warren Patterson and Ewa Manthey said on Wednesday.

“As a result, we could see further volatility in natural gas prices for the remainder of the week.”

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News