PERTH, AUSTRALIA – Workers at Woodside Energy’s Pluto 2 liquefied natural gas (LNG) project are moving to secure approval for strike action as negotiations over pay remain at an impasse. The union group, known as the Offshore Alliance, filed an application with Australia’s Fair Work Commission on Thursday, seeking formal permission to take industrial action before the end of 2025.

The Pluto 2 project, an expansion of Woodside Energy’s existing LNG facility in Western Australia’s Pilbara region, is currently under construction by Bechtel. A strike could significantly disrupt construction timelines and potentially delay the company’s plan to ship the first LNG cargo from Pluto 2, currently scheduled for the second half of 2026.

Union Demands and Pay Dispute

The Offshore Alliance, comprising members from the Maritime Union of Australia and the Australian Workers Union, cited stalled negotiations with Bechtel as the reason for the proposed strike. According to the union, workers at Pluto 2 are earning hourly rates approximately 30% lower than their counterparts performing similar roles on Chevron’s Wheatstone LNG project, after accounting for adjustments in the consumer price index.

The union is demanding a 30% pay increase to align Pluto 2 wages with industry standards. Previous pay negotiations offered by Bechtel included a 5% raise in November, which was overwhelmingly rejected by 83% of workers.

Project Progress and Potential Delays

Woodside Energy previously reported in October that the second processing unit, Train 2, with an annual capacity of 5 million metric tons of LNG, is 91% complete and on track to deliver its first shipment in late 2026. However, industrial action could slow construction progress, creating logistical and financial challenges for the project and affecting Australia’s LNG export timelines.

The Fair Work Commission must approve the union’s request for protected industrial action, after which union members will vote on whether to proceed with the strike. The Offshore Alliance expects “the overwhelming majority” of the 1,800 workers involved will vote in favor of industrial action, potentially halting work before the end of the year.

Woodside Energy and Bechtel have not provided immediate comment on the union filing.

Impact on Australia’s LNG Industry

The Pluto 2 project is a critical component of Australia’s LNG sector, which is a major contributor to national exports. Any significant delay in Pluto 2 operations could have broader economic implications, including impacts on LNG supply contracts, energy markets, and regional employment.

Conclusion

As wage disputes escalate at Woodside’s Pluto 2 LNG expansion, all eyes remain on the Fair Work Commission’s decision. A strike would mark a significant industrial action in Western Australia’s resource sector, underscoring ongoing tensions between labor unions and multinational contractors over fair pay and working conditions.