FINANCIAL REVIEW
Dispute stops cargoes at Shell’s huge floating LNG plant
Angela Macdonald-Smith: Senior resources writer
Updated Jun 28, 2022 – 10.36pm, first published at 9.22pm
Shell’s monster floating LNG project off the north-west coast has cancelled cargoes until at least mid-July amid an escalating industrial dispute, tightening the supply of gas in the already-stretched global market.
Trade unions represented through the Offshore Alliance say Shell has threatened union negotiators with its intention to shut down the facility amid the deteriorating situation.
Australian Workers’ Union national secretary Daniel Walton described the threat as “insane” given the national gas crisis, and said the energy major was trying to bully the nation into agreeing to its “hardline” demands.
However the energy multinational insists it is union bans that are behind the likely shutdown, restricting its ability to operate the complex facility and offload cargoes. Prelude supplies LNG to the export market, not to Australian energy users.
A Shell spokeswoman said the group has notified customers that it is cancelling cargoes until at least the middle of next month due to the impact of the industrial action.
The dispute centres around a new collective agreement under negotiation between Shell and the unions, for workers that industry sources say are paid an average of $250,000-$280,000, and in some cases more through bonuses, allowances and overtime. read more
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