Global gas prices could rise briefly if strikes occur at Australia's liquefied natural gas (LNG) facilities, but markets are balanced now with high inventory levels in Asia and Europe, a Shell executive said on Wednesday.
Gas prices spiked last week over concerns that industrial action could disrupt exports from major Australian LNG plants operated by Woodside Energy and Chevron. Prices have eased this week.
"Supply and demand balance in LNG is quite matched which is why we see some vulnerability (in prices)," said Zoe Yujnovich, Shell's integrated gas and upstream director.
However, she said there has not been significant hedging or buying pattern changes so far due to the potential strikes. "It's been a little bit of an over-reaction globally in terms of price response," Yujnovich said.
Woodside Energy is in talks with unions to prevent strikes at North West Shelf, Australia's largest LNG plant, over wages and working conditions.
Those talks come a day before Chevron workers vote on allowing strikes at the Gorgon and Wheatstone LNG facilities. The three plants supply about one-tenth of global LNG.
