Dutch wholesale gas prices gained on Monday as concerns persisted over possible industrial action at Chevron’s liquefied natural gas (LNG) facilities in Australia, while the British market was closed for the August Bank Holiday.

The Dutch September contract rose by 0.83 euro to 35.61 euros per megawatt hour (MWh) by 0807 GMT, and the October contract traded up 0.59 euro at 38.41 euros/MWh, Intercontinental Exchange data showed.

Workers at a third LNG facility operated by Chevron CVX.N in Australia on Monday voted to authorise the Offshore Alliance of Unions to call a strike if necessary as a dispute over wages and working conditions drags on.
Last week, the Offshore Alliance reached an in principle agreement with Woodside for the North West Shelf LNG facility, Australia’s largest.

The unresolved situation at Chevron’s Gorgon and Wheatstone sites added to uncertainty that is driving prices higher.

“We expect rising prices today as a formal strike notice could be issued,” analysts at Energi Danmark said in a morning note.

Workers can go on strike after a seven-day notice period if no agreement with Chevron is reached.

Together, the Chevron facilities have an annual production capacity of 33.8 billion cubic metres, analysts at Engie EnergyScan said in a weekly report.

“With European gas demand well on track to drop to the 380 bcm level (and even lower), the European gas balance can afford a certain level of drop in LNG supply,” they added.

European gas storages are 92.3% full, Gas Infrastructure Europe data shows.

Extensive maintenance at Norwegian oil and gas infrastructure also supported prices, as it led to a fall of 153 million cubic metres (mcm) per day in export capacity on Monday, almost halving total availability, Gassco data showed.

In the European carbon market, the benchmark contract CFI2Zc1 gained 0.19 euro to 85.58 euros a tonne.
Source: Reuters (Reporting by Nora Buli; editing by Barbara Lewis)