Goldman Sachs on Australian LNG strikes: chance of a lengthy spike in gas prices are low

<p>Goldman Sachs says that while strikes at the Chevron-operated Gorgon and Wheatstone LNG facilities in Australia will raise supply risks, the probability of long outage that could fuel a lengthy spike in gas prices are low. GS reason that:</p><ul><li>
"This is both because of the potentially large revenue losses to Chevron, the facility operator, associated with a full LNG export outage, and because of potential regulatory intervention"</li></ul><p>GS said resolution of the industrial dispute could push Dutch TTF natural gas prices down to the €23-€33/MWh range for the rest of summer.
</p><p>–</p><p>Gorgon and Wheatstone account for 5% of global supply,</p><ul><li>work stoppages began last Friday</li><li>the union says it will stop work completely for two weeks starting September 14</li><li>

Chevron has asked Australia's Fair Work Commission to intervene in the dispute</li><li>The FWC will hear the case on September 22</li></ul><p>Wheatstone</p>

This article was written by Eamonn Sheridan at www.forexlive.com.