Ichthys LNG Strike Causes Delay to Taiwan-Bound Cargo

Loading of a Taiwan-bound LNG tanker at the Inpex-operated 1605.T Ichthys plant in Australia has been delayed after a limited strike by workers disrupted operations at the terminal, according to the union and shipping data.

The delay highlights supply risks from the facility that accounts for about 10% of LNG output in Australia, currently the world's second-largest producer of the super-chilled fuel after the U.S.-Israeli war with Iran damaged facilities in Qatar and drove up prices.

The Pacific Breeze LNG tanker was facing a 24-hour delay after a two-hour work stoppage caused it to miss its departure window, the Offshore Alliance said in a social media post late on Tuesday.

The tanker had been expected to load on May 31 and arrive at the Yung An port in Taiwan on June 9 for Taiwanese state energy firm CPC, ship-tracking data from Kpler showed.

Inpex and CPC did not respond immediately to requests for comment.

Workers at the Ichthys LNG facility, operated by Japan's biggest oil and gas explorer, began a limited strike on Tuesday over a wage dispute, but threatened broader action next week that could disrupt LNG production and loadings.

The facility produces about 9.3 million metric tons of LNG annually, supplying the fuel primarily to buyers across Asia. It is a joint venture between Inpex, TotalEnergies TTEF.PA and the Australian subsidiaries of CPC Corporation Taiwan, Osaka Gas 9532.T, Kansai Electric Power 9503.T, JERA and Toho Gas 9533.T.

The Offshore Alliance, made up of the Maritime Union of Australia and the Australian Workers' Union, said it was taking the action after Fair Work Commission-facilitated bargaining failed to resolve key claims on pay and conditions. The Electrical Trades Union has also joined the strike.

Any supply disruption from prolonged strikes could further tighten already constrained global LNG markets.

Asia spot LNG prices LNG-AS are currently up 75% since the Iran war began to $18.20 per million British thermal units (mmBtu), driven by supply losses and shipping risks through the Strait of Hormuz, through which about a fifth of global oil and LNG supply normally passes.

(Reuters - Reporting by Helen Clark in Perth and Emily Chow in Singapore; Editing by Florence Tan and Jamie Freed)

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