Why did the Offshore Alliance call off the strike at the Inpex Ichthys LNG facility?

The union group called off the planned industrial action for May 27 and 28 because of progress made in enterprise bargaining negotiations. The Offshore Alliance, which includes the Australian Workers' Union and the Maritime Union of Australia, had previously served a strike notice following a breakdown in talks over pay and working conditions.

How much liquefied natural gas does the Inpex (TYO:1605) Ichthys facility produce?

The Ichthys LNG facility located in Darwin, Australia, is a major energy asset with an annual production capacity of 9.3 million metric tons. Because of its massive output, any halt in production threatens global energy supply chains, particularly for Asian importers.

Why is the cancellation of the Inpex strike highly significant for Japan’s energy market?

Australia is Japan's largest supplier of liquefied natural gas, and the country is currently facing a potential energy supply crunch. Halting the strike averts an immediate supply disruption at a time when Japan is dealing with geopolitical tensions in Iran and rising domestic electricity demand.

What seasonal factors are currently amplifying Japan's demand for LNG?

Japan is heading into summer, a period marked by soaring domestic air-conditioning demand that heavily strains the local power grid.

How strong was the support for industrial action among Inpex union members before talks progressed?

Support for the strike was overwhelming, with 326 out of 346 union members voting in favour of industrial action. This high mandate gave the Offshore Alliance significant leverage during the Fair Work Commission's mandatory negotiation period before progress was finally achieved.

Image for illustrative purposes only. Not a real photo.

Australian LNG strike called off, relieving Japan

Written by Liezl GambePublished May 26, 2026, 5:07 AM

A looming energy crisis has been temporarily averted after a prominent Australian union group called off planned industrial action at Inpex’s Ichthys liquefied natural gas facility.

The Offshore Alliance, a partnership between the Australian Workers’ Union and the Maritime Union of Australia, said that it had withdrawn strike action scheduled for May 27 and 28, citing progress in enterprise bargaining negotiations.

The union had previously served notice to the Japanese gas giant on May 18 following a breakdown in talks over pay and conditions, which saw 326 of 346 members vote overwhelmingly in favour of the walkout.

The decision to halt the strike brings a sigh of relief to Japan, which relies heavily on Australia as its largest LNG supplier and is currently navigating a potential energy supply crunch fuelled by geopolitical tensions in Iran and soaring domestic air-conditioning demand ahead of summer.