SYDNEY/MELBOURNE — Shell Plc said on Wednesday liquefied natural gas (LNG) shipments from its Prelude floating LNG facility off northwest Australia will be disrupted until at least mid-July due to work bans by unions fighting for better pay.
“We have issued a notice to customers that cargoes will be impacted until at least mid-July due to the industrial action,” a Shell spokesperson said in an emailed comment.
The loading disruption at the 3.6 million tonnes-a-year Prelude floating LNG facility comes just three months after Prelude resumed shipping LNG following a four-month shutdown due to a major power failure.
Workers on Prelude began 12 days of industrial action on June 10 over a pay dispute. They are set to vote on a new offer from Shell on July 7.
The Prelude disruption comes as Europe scrambles to secure LNG cargoes to make up for lost Russian gas supply and an outage at the biggest U.S. LNG exporter to Europe, Freeport LNG, compounds tight global supplies.
(Reporting by Renju Jose in Sydney and Sonali Paul in Melbourne; Editing by Jacqueline Wong)