Goldman Sachs says that while strikes at the Chevron-operated Gorgon and Wheatstone LNG facilities in Australia will raise supply risks, the probability of long outage that could fuel a lengthy spike in gas prices are low. GS reason that:
- "This is both because of the potentially large revenue losses to Chevron, the facility operator, associated with a full LNG export outage, and because of potential regulatory intervention"
GS said resolution of the industrial dispute could push Dutch TTF natural gas prices down to the €23-€33/MWh range for the rest of summer.
Gorgon and Wheatstone account for 5% of global supply,
- work stoppages began last Friday
- the union says it will stop work completely for two weeks starting September 14
- Chevron has asked Australia's Fair Work Commission to intervene in the dispute
- The FWC will hear the case on September 22