Shell's Giant Prelude FLNG Unit to Remain Shut for Longer as Pay Dispute Continues

Sonali Paul
Thursday, August 18, 2022

Unions at Shell Plc's Prelude floating liquefied natural gas (FLNG) site off Australia have extended industrial action to Sept. 1 over a long-running pay dispute, the company said on Thursday. 

Shell shut down the 3.6-million-tonne-a-year site in July and told customers it would be unable to supply LNG cargoes for the duration of work stoppages approved by Australia's Fair Work Commission, or Protected Industrial Action (PIA). 

"We can confirm it's been renewed until Sept. 1," a Shell spokesperson said of the protected industrial action. The work stoppages began on June 10 and no cargoes have been shipped from the site in about five weeks, worsening a global LNG supply crunch amid the Ukraine conflict. 

The Offshore Alliance, which represents workers from the Australian Workers' Union and the Maritime Union of Australia, said on its Facebook site it would extend industrial action for as long as it took to reach a new enterprise bargain agreement with Shell. 

"Our Prelude members have drawn a line in the sand on job security and have this week supported the extension of Protected Industrial Action until our bargaining claims are resolved," the Offshore Alliance said in a posting on Thursday. 

One of the main outstanding issues is the unions' demand that Shell ensure that it will not outsource jobs to contractors at lower rates than they pay their own staff for the same jobs, the alliance said. 

Unions are using an April pay deal with Japan's Inpex Corp at its Ichthys LNG operation as a benchmark for talks with other oil and gas majors. Prelude is co-owned by Shell, Inpex, Korea Gas Corp (KOGAS) and Taiwan's state-run Chinese Petroleum Corp.

(Reuters -  Reporting by Sonali Paul; Editing by Edmund Blair)


Categories: Offshore Industry News Activity Floating Production FLNG Australia/NZ People & Company News

Related Stories

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

CNOOC Brings Online Another Oil and Gas Project in South China Sea

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Woodside Finds South Korean Partners to Advance LNG Value Chain

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com