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Oil & Gas - Looming Workers’ Strike At Chevron’s Australian LNG Plants Creates Uncertainties: ICICI Securities

News reports indicate that workers at Chevron’s Wheatstone and Gorgon LNG plants are set to go on limited strike from Sep 07, 2023

<div class="paragraphs"><p>(Source: Lyndon Antcliff/ Unsplash)</p></div>
(Source: Lyndon Antcliff/ Unsplash)

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ICICI Securities Report

News reports indicate that workers at Chevron’s Wheatstone and Gorgon liquefied natural gas plants are set to go on limited strike from September 07, 2023, potentially impacting exports of 24.5 million tonne (~88 million metric standard cubic metre per day) of combined capacities at the two terminals.

This represents ~5% of global LNG liquefaction capacity. We note that this action, if it escalates to a full scale suspension of work can create material tightness in global LNG markets.

From India’s perspective, the stoppage can create a real impact as GAIL India Ltd. gets 1.44 mt of LNG on a long-term contract from the Gorgon terminal.

We note that longer-term demand-supply estimates remain fairly balanced, but short-term fluctuations create downside risk to margins of city gas distribution companies and GAIL’s petrochemical segment.

Click on the attachment to read the full report: 

ICICI Securities Oil and Gas LNG Prices Sector Update.pdf
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