Australia's labor regulator has cleared the path for a strike at one of the country's largest liquefied natural gas facilities. The Fair Work Commission rejected a bid by Inpex to suspend industrial action at the Ichthys LNG plant, which has a capacity of 9.2 million tons per year.
The operator had applied for a suspension of the strike, arguing that the walkout would significantly disrupt normal operations and exports. The commission sided with trade unions, denying the request amid a persistent failure by both sides to reach an agreement.
The Ichthys facility is a major supplier to Asian markets, and any prolonged disruption could tighten global LNG supplies. Japan, which relies heavily on Australian LNG, is particularly exposed to potential shutdowns.
The strikes are part of a broader wave of labor disputes across Australia's energy sector, which has seen workers demand better pay and conditions amid record profits for producers. The regulator's decision underscores the difficulty companies face in curbing industrial action.
[counter_argument] Some analysts argue that the impact may be muted if unions and Inpex reach a last-minute deal, or if the strike is short-lived, limiting actual production losses. Other LNG producers could also ramp up output to fill any gaps.