Inpex LNG workers escalate strike after talks fail

Inpex's Ichthys LNG operations in Western Australia face major disruptions after the Offshore Alliance union announced an escalation of industrial action following a breakdown in negotiations.

The decision follows a failure to progress talks with the Japanese energy giant on Sunday night, leading union members to vote overwhelmingly to double their current strike actions.

The escalation will see existing four-hour daily work stoppages expand to eight-hour shifts starting June 11, alongside a comprehensive suite of strict work bans.

The dispute centres on claims that Inpex reneged on terms previously established during Fair Work Commission-facilitated bargaining over the weekend.

According to the Offshore Alliance, which comprises the Maritime Union of Australia and the Australian Workers’ Union, Inpex is pushing for an enterprise agreement with substantially weaker conditions.

Key points of contention include reductions to remote-work benefits, fewer guaranteed full-time positions, diminished competency-based pay structures, and redundancy packages that fall well below current industry standards.

The escalating industrial action poses a severe threat to global energy markets. The Ichthys facilities produce approximately 10% of Australia’s liquefied natural gas exports.

This supply has become critical to international buyers after Australia rose to become the world’s second-largest LNG exporter, filling a vital supply gap caused by extensive damage to Qatari production facilities during the Iran war.

With negotiations stalled and the union digging in, analysts warn that prolonged stoppages could heavily impact export volumes and drive global LNG prices higher as winter demand approaches in the northern hemisphere.