European Gas Prices Jump as Chevron Fails to Avert LNG Strikes

European natural gas prices jumped as workers at two key Chevron Corp. facilities in Australia began partial strikes on Friday after talks failed.

(Bloomberg) — European natural gas prices jumped as workers at two key Chevron Corp. facilities in Australia began partial strikes on Friday after talks failed.

Benchmark Dutch futures rose as much as 11% to €36.20 a megawatt-hour. The industrial action covers the Gorgon and Wheatstone liquefied natural gas facilities, which supplied roughly 7% of global LNG last year.

The dispute has jolted the global market since early August even though it looks well supplied for now. Given tepid demand and that stockpiles in Europe are almost full well ahead of targets, traders do not expect a sizable impact from the dispute. Yet, the risk of prolonged disruptions would keep up the pressure in a volatile market that still hasn’t recovered fully from last year’s energy crisis.

Read more: How LNG Strikes in Australia Will Impact Natural Gas Supply

Unions began the partial strikes from 1 p.m. At Chevron’s Wheatstone Platform, Wheatstone Downstream and Gorgon facilities, Offshore Alliance said in a statement on Friday.

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