Workers Return at Ichthys LNG After Agreement; Safety Probe Underway
Workers at Inpex's Ichthys liquefied natural gas (LNG) facility in Darwin have returned to work after an in-principle agreement was reached, ending weeks of industrial action. Separately, the Northern Territory workplace safety regulator is investigating a suspected chemical exposure incident at the same facility.
Industrial Dispute & Agreement
Background
Over 400 workers represented by the Electrical Trades Union and the Offshore Alliance began protected industrial action in early June 2024 after negotiations for a new enterprise bargaining agreement broke down.
The industrial action included work stoppages of up to eight hours per day, starting June 11, following an escalation from four-hour stoppages. Inpex is the operator of the Ichthys LNG facility, which has a production capacity of 9.2 million tons per annum. The facility processes gas from offshore Western Australia in Darwin.
Fair Work Commission Ruling
"Inpex's evidence that such a loss would damage the Australian or Northern Territory economy was not compelling."
— Deputy President Michael Easton
Inpex applied to the Fair Work Commission (FWC) for urgent orders to stop the industrial action, arguing it posed a serious risk of shutting down facilities and threatening damage to Australia's LNG export market.
FWC Deputy President Michael Easton dismissed the application in an expedited hearing. Easton ruled that while the strikes and work bans threatened to cause a full production stoppage for at least a week, Inpex's evidence that such a loss would damage the Australian or Northern Territory economy was not compelling. He noted that production stoppages occur relatively frequently and that lost time can sometimes be made up. Easton also found no real threat to public safety, as contingency measures were already being deployed by the Power and Water Corporation.
Agreement Terms
On Tuesday night, Inpex and the unions reached an in-principle agreement.
The terms include annual pay rises of 3.75%, as well as improved job security and career progression systems. All industrial action ceased the following day, and regular operations resumed. Inpex also resumed loading vessels bound for Asian export markets. A formal vote by union members is expected shortly.
Context and Statements
Global LNG markets were reported to be tight due to export disruptions in the Persian Gulf, with Asian LNG prices 75% higher than before the start of the conflict between the United States and Iran in late February 2025.
"These pay rises would increase labour costs by 50-60% and push average salary over $500,000 per year."
— Australian Resources and Energy Employer Association
Industry group Australian Resources and Energy Employer Association stated that the pay rises would increase labour costs by 50-60% and push average salary over $500,000 per year. Offshore Alliance coordinator Zach Duncalfe described the negotiations as "hard fought" and acknowledged "great rates of pay" were negotiated, but disputed the specific figures cited by the employer association. Duncalfe stated the union aimed to set a benchmark for upcoming negotiations with other companies.
Inpex senior vice-president corporate Bill Townsend said the company was focused on maintaining safe operations and ensuring reliable energy supply amid global market disruption.
Safety Incident Investigation
Incident Details
One worker was hospitalized in January 2025 following potential exposure to sulphur dioxide at the Ichthys facility. The Australian Workers' Union (AWU) NT organiser Caleb Burke reported the incident to NT WorkSafe.
A contractor employed by Altrad was potentially exposed to gas on January 12 while working near the plant's acid gas incinerators. The worker reported a strong smell, followed by a dry and itchy throat and a cough. After symptoms worsened, the worker visited Inpex's site medic on January 14 and was transferred to Palmerston Regional Hospital, where they were diagnosed with reactive airways disease.
Regulatory Response
"Immediate treatment as an inpatient in a hospital requires notification."
— AWU NT organiser Caleb Burke
NT WorkSafe confirmed it began an inquiry on January 15 after receiving a safety concern about the hospitalized worker. Burke alleged that Inpex executives, during a meeting, suggested the incident was not reportable because the worker did not receive medical treatment within 48 hours of exposure. Burke stated that immediate treatment as an inpatient in a hospital requires notification. Inpex has not responded to inquiries regarding the incident.
Broader Context
During a site visit, Burke reported that multiple other workers raised concerns about sulphur dioxide exposure near the acid gas incinerator. These workers allegedly claimed that management dismissed their concerns.
Inpex is currently subject to separate federal and NT government investigations concerning an oil spill in Darwin Harbour in October 2024 and the under-reporting of toxic chemical emissions. Media reports last month also indicated an investigation into suspected mercury poisoning at an offshore facility off the NT coast.