Global energy markets face fresh volatility as workers at Inpex's massive Ichthys LNG Project move towards industrial action, threatening to choke supply amidst an unprecedented international gas crunch.
The Offshore Alliance—a partnership between the Maritime Union of Australia and the Australian Workers Union—has applied for industrial action ballots, potentially enabling 460 offshore and onshore employees to strike as early as May 3.
The escalation follows six months of stalled negotiations, with unions seeking a "new industry standard" that includes annual pay rises of CPI plus 3% and enhanced FIFO benefits.
If granted, Inpex estimates labour costs could surge by 60%, pushing some annual salaries beyond $500,000.
Offshore Alliance spokesman Chris Donovan argued that years of declining real wages left staff with "no other option", noting that Inpex's four weekly shipments are each valued at approximately $140 million.
The timing is critical. With Middle Eastern conflicts already straining global supplies, a prolonged stoppage at Ichthys—which provides 8% of LNG imports for both Japan and Taiwan—could shift global price-making power.
While Inpex Vice President Bill Townsend emphasised a commitment to a "reliable energy supply" for Indo-Pacific partners, industry bodies have labelled the union claims "unsustainable".