Gas prices in Europe fall, strike in Australia averted
Wholesale gas prices in Europe have slipped after a scheduled strike at Australia’s largest liquefied natural gas plant looked to have been deterred.
The strike at Woodside Energy’s North West Shelf plant had risked disrupting international LNG supplies, sharply pushing gas prices in Europe.
But on Thursday, the company reached an accord in principle with unions, which is expected to end the strike. Benchmark EU and UK gas costs are down by nearly 33% since their rise on Tuesday.
Employee spokespeople at the North West Shelf plant said they were “supportive of the in-principle agreement” with Woodside Energy and would vote to approve the agreement at 7.30 pm Perth time (11:30 GMT).
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“It’s pleasing that Woodside has made our members a strong offer without industrial action being taken,” union alliance representative Brad Gandy said.
Following the beginning of the war in Ukraine, Russia cut natural gas supplies to Europe, which led nations to seek out alternative energy sources. Many countries depend on LNG to seal the gap, with Australia being one of the planet’s largest exporters.
It has led to a gradual decline in international gas prices and energy bills, which skyrocketed in 2022. However, the possibility that employees at the North West Shelf plant might walk out on 2 September sparked worries that prices would begin to climb again.
