Labor unions halted plans to strike at Chevron Corp.’s liquefied natural gas facilities in Australia, ending a dispute that had roiled global markets for the fuel.
Workers accepted Chevron’s proposed settlement Tuesday on pay and working conditions and will not move forward with a labor action planned for Thursday, according to a statement from the Offshore Alliance union group.
Worries over the prospects of reduced gas exports from one of the world’s biggest suppliers — as well as other unrelated outages — prompted price spikes in Europe and Asia over the summer. More recently, concerns over possible supply disruptions have intensified due to the unfolding conflict in the Middle East.
The agreement by workers to accept the terms effectively resolves a dispute that triggered strikes last month at Chevron’s Gorgon and Wheatstone facilities, which accounted for about 7% of global LNG supply last year. Workers threatened to strike again after they criticized the company’s efforts to finalize an agreement.
A spokesperson for Chevron did not immediately comment.
