Australia’s Fair Work Commission (FWC) denied a request from Japan’s INPEX to terminate union strikes on June 14.
The ruling impacts the Ichthys LNG export facility, which produces 9.3 million tonnes per annum. INPEX warned that a full production shutdown could occur within the coming week due to safety and economic risks. The FWC ruled the potential economic impact did not meet the legal threshold required to halt protected industrial action.
The Ichthys facility accounts for approximately 10% of Australia’s total LNG export capacity. A shutdown would remove significant supply from the global market, specifically targeting Northeast Asian customers.
Asian spot LNG prices reached an 11-week high last week due to Middle East tensions and heat-driven demand. This potential outage threatens to drive prices higher as buyers seek alternative cargoes.