Employees at Chevron's liquefied natural gas (LNG) facilities in Australia have voted against the company's proposed pay package, paving the way for potential work stoppages that could impact global supply. The rejection came from almost all of the 461 workers at the Gorgon and Wheatstone downstream plants, following a similar defeat of the proposal at the Wheatstone platform last month, as reported by the Offshore Alliance, a union body.

Unions had refrained from engaging in negotiations with Chevron until the ballot results were known, adding to the uncertainty surrounding the looming strike action scheduled for next week.

A Chevron spokesperson acknowledged the workers' rejection of the proposed agreements, describing it as "part of the bargaining process and an important step that enabled employees to voice their concerns."

The impending threat of worker action in Western Australia has caused ripples in global natural gas markets, which are already on edge due to Russia's invasion of Ukraine last year, resulting in supply disruptions and record-high prices. The two Chevron-operated facilities in Australia accounted for approximately 7% of the global LNG supply last year.

Unions issued a seven working days' notice of industrial action at these multibillion-dollar facilities, which is set to commence at 6 a.m. local time on September 7, as announced by the Offshore Alliance.

Gorgon's shareholders include Exxon Mobil Corp. and Shell Plc, each holding a 25% stake, while Wheatstone's investors include Kuwait Foreign Petroleum Exploration Co. and Woodside Energy Ltd., with about 13% each.

A similar dispute between the union alliance and Woodside Energy Group at a nearby LNG facility was resolved through negotiations, with unions ultimately not proceeding with their strike threats.