Source: Australian Mines and Metals Association – AMMA
Statement by Tara Diamond, Deputy Chief Executive, AREEA
As a result of irresponsible strike action organised by the “Offshore Alliance” targeting INPEX’s gas facilities in Northern Australia, two condensate cargoes bound for Japan and South Korea have been delayed.
Only weeks ago, Japanese-owned INPEX provided a cargo of condensate from this very facility to help supply Australian refiners during our own fuel shortage1.
Around the same time, Australia signed joint statements on energy security with both South Korea and Japan – the very partners now affected by this action. Korea is Australia’s largest supplier of diesel, and Australia is Korea’s largest supplier of LNG. As our Foreign Minister put it, “we depend on you, and you depend on us”.2
Australia supplies around a third of Japan’s energy and is its largest LNG market, while Japan is a reliable supplier of refined petroleum and diesel to Australia. In signing that agreement, the Prime Minister was explicit: energy is critical to our shared economic security, and both countries are committed to keeping the flow of energy between them open.3
These are crucial energy relationships this strike action is putting at risk. At the very moment Australia has pledged to be a dependable partner to the very countries that help keep Australian fuel flowing, union action is cutting off the supply those partners rely on and undermining Australia’s reliability.
Condensate is the feedstock used to produce refined fuels like petrol. After helping Australia out – the same product, from the same facility, is now being blocked from reaching trading partners who are managing their own fuel crisis.
Every delayed cargo is a reminder that this action reaches far beyond INPEX, to the communities and trading partners who depend on this industry.
The responsible course is to stop the disruption and return to genuine bargaining, where substantial offers are already on the table, but being ignored by the Offshore Alliance organisers.
Tomorrow, the Fair Work Commission will hear INPEX’s application to halt this damaging action and send the parties back to the bargaining table – the proper forum for a dispute of this national significance, and an opportunity we hope the Commission will take.
And should the Commission’s processes fall short, the Australian Government has powers available to it to bring this action to an end. Where energy security, trading relationships and public safety are all on the line, there is a clear case for it to use them in the national interest.
MEDIA CONTACT: Tom Reid | 0419 153 407 | [email protected]
1Since 2019, INPEX has supplied more than 30 condensate cargoes from the Ichthys Field to Australian customers, with around four cargoes delivered on average each year.
2 https://www.foreignminister.gov.au/minister/penny-wong/transcript/press-conference-seoul-republic-korea
3 https://www.pm.gov.au/media/strengthening-energy-security-japan