European natural gas prices jumped on Friday as workers at two major Chevron Corp. plants. It started with partial strikes in Australia. Talks with the union regarding liquefied natural gas (LNG) plants had previously failed.
Dutch benchmark futures rose as much as eleven percent to 36.20 euros per megawatt hour. The industrial dispute affects the Gorgon and Wheatstone liquefied natural gas plants, which last year supplied about seven percent of the world’s liquefied natural gas.
The conflict has shaken global markets since the beginning of August. European natural gas prices had already skyrocketed on August 21. At that time the employees were preparing to strike for the first time.
Traders expect the unrest to have no further impact as demand is currently low and reserves in Europe are almost full. But a prolonged disruption would keep pressure on a volatile market that has still not fully recovered from last year’s energy crisis.
Unions began a partial strike at Chevron’s Wheatstone Platform, Wheatstone Downstream Facility and Gorgon Facility at 1 p.m., the Offshore Alliance said in a statement Friday.
