Labour unions at Chevron’s two liquefied natural gas (LNG) facilities have issued a fresh threat of strikes, potentially disrupting operations at the sites in Western Australia.

Citing unresolved issues, the LNG unions told global news agency Reuters that they have given Chevron seven days’ notice of the planned strikes at the Wheatstone and Gorgon facilities.

Disruptions to Chevron’s operations in these facilities may affect approximately 6% of the company’s global LNG output.

Chevron has already committed to reaching a deal with the striking workers but is facing challenges, such as disagreements about travel and meal expenses and cabin sharing on offshore platforms.

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Industrial action not needed, says Chevron

The company added that it already sought Australia’s industrial tribunal, the Fair Work Commission, to intervene and resolve these issues.

“We don’t believe that industrial action is necessary, given we are seeking the assistance of the Fair Work Commission to resolve the small number of outstanding items," Chevron reiterated in a statement.

The organisation, which already confirmed receiving the notice from the unions, said they will continue to maintain safe and reliable operations despite the planned strikes.

Efforts to avoid fresh strikes have been met with scepticism, as unions argue that Chevron had reneged on a deal brokered by the Fair Work Commission in September, leading to the resumption of threats.

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Chevron, however, insists that a draft deal based on the in-principle agreement is nearly finalised, and once the Fair Work Commission provides further clarification, it can be up for voting among employees.

The market's response to the renewed strike threats has been mixed. While European gas prices saw an increase, Asian spot LNG prices experienced a decline, reflecting uncertainty in the LNG market.

In the event that negotiations completely break down, Chevron retains the option to petition the Fair Work Commission for intervention to impose an agreement and halt the strikes.

However, Chevron must give a seven-day notice before pursuing this course of action.