A last-minute truce has been struck between Chevron and workers at the company's Western Australian LNG plants, where a dispute had threatened to disrupt global gas supplies.
Unionised workers at Chevron's Wheatstone and Gorgon facilities on the Pilbara coast late on Thursday agreed to terms brokered by the industrial umpire to end a pay dispute.
The deal puts an end to strikes that started almost two weeks ago at the plants supplying about seven per cent of the global LNG market, which have roiled global gas prices.
The Offshore Alliance union, which had been leading negotiations, on Friday said it will work with Chevron to finalise drafting an agreement and members will soon cease current industrial action.
The Fair Work Commission (FWC), which has the power to impose a settlement, on Thursday "strongly recommended" the parties accept its proposals to end stoppages by about 500 workers.
The strikes began on September 8 at the Wheatstone platform, Chevron's downstream processing facility of the same name, and the Gorgon downstream processing facility.
Gorgon and Wheatstone supply 44 per cent of WA's domestic gas and revenue from the projects is estimated at $76 million a day, according to research group EnergyQuest.
Commissioner Bernie Riordan recommended the industrial action be called off, arguing a breakthrough was imminent after "countless hours at the negotiating table".
"These discussions have resulted in widespread agreement on the majority of provisions of the proposed enterprise agreements," he wrote.
"It would be a pity and very frustrating to simply throw out these agreed positions and have the parties return to their respective logs of claims for any future arbitration."
As part of a proposed settlement, Mr Riordan recommended lifting the upper limit on automatic progression, including a job security clause and awarding employees a $7000 travel allowance.
The union had been scathing of Chevron management over its proposed enterprise bargaining agreement (EBA), which it claimed fell well below industry standards.
Chevron had been the last major producer in the WA gasfields without an EBA after workers at Shell, Inpex and Woodside signed off on agreements of their own.
Chevron, which maintains it has consistently engaged in meaningful negotiations and offered market competitive pay and conditions, says it is pleased all parties have accepted the recommendations.
The company adjourned its application for the FWC to rule on an "intractable bargaining" declaration, which had been set for a hearing on Friday.
"The recommendation resolves the issues that remained outstanding following conciliation sessions this week," a Chevron spokesperson said.
"We are also pleased to have continued to meet all our commitments to domestic and international customers during this time."
Energy analyst Saul Kavonic said the threat of strikes is now over, having had no material impact on global gas supplies and not a drop of domestic gas lost.
"This draws to a close the saga whereby a few hundred workers in hi-vis overalls offshore WA brought European gas traders to their knees, causing tens of billions of dollars in market movements after threatening to disrupt around 10 per cent of global LNG supply," Mr Kavonic wrote on X, formerly Twitter.
