Chevron Australian LNG plant resumes full production despite strikes

(Bloomberg) – Chevron Corp. resumed full production from a liquefied natural gas (LNG) export facility in Australia that suffered a fault last week, even as union members continue strikes at the site.

Scheduled LNG deliveries from the Wheatstone gas facility were not impacted by a fault that occurred on Sept. 14 and domestic supply was also unaffected, the company said Monday in a statement. “During this time, LNG continued to be produced at approximately 80% of usual rates, and vessel loading continued,” a spokesperson said.

The restart indicates Chevron is able to keep exporting fuel despite an escalation in industrial action to 24-hour walkouts at key facilities in Australia over the weekend. Chevron is using some non-unionized workers to operate its projects.

A prospect of lower gas exports from one of the world’s biggest suppliers has sent global prices higher, as it threatens greater competition for LNG during peak demand in the northern hemisphere winter. Chevron’s Wheatstone and Gorgon plants, where workers are currently striking, exported about 7% of global LNG supply last year.