Chevron Fully Resumes LNG Operation Despite On-Going Strike

Chevron (NYSE: CVX) had fully resumed its liquefied natural gas (LNG) production at Wheatstone, the 9 million tons-a-year facility in Western Australia after one-fifth output had been cut by the worker union strike last week.

The strike had no effect on scheduled LNG deliveries as the tanker, the vessel Pacific Enlighten was able to dock and load 140,000 cubic meters of LNG at Wheatstone terminal last Thursday.


The tanker is controlled by JERA, the largest LNG importer in Japan. JERA is the 50/50 joint venture between Tokyo Electric Power Company (TEPCO) and Chubu Electric Power, while another tanker from China, Macoma was able to load its cargo at Gorgon, the 15 million tons-a-year facility as well.

Tanker Asia Excellence loaded its cargo over the weekend at Wheatstone and headed to Japan, while Tanker Maran Gas Psara is now loading at Gorgon, the LSEG Eikon data showed. And more tankers are still scheduled to both facilities as well. According to Kpler’s data, both facilities expected at least 25% lower exports in September than the previous month.


According to Reuters, workers at both facilities started the stoppages for 12 hours on Thursday evening, and escalated over the weekend to 24-hour stoppages, while the company might brought-in non-union workers to keep the facilities going. The strike was set to extend until September end and possible to 14 October.

 Chevron told Reuters in an email that there has been no change to scheduled LNG deliveries and that the domestic gas facilities and supply were unaffected.