Bechtel LNG projects facing delays over Union dispute

According to Credit Suisse Group AG, Bechtel, the contractor for more than $60 billion LNG projects in Australia, is facing a dispute with unions which raises concerns over possible startup delays.

In an interview with Bloomberg, Bechtel’s Gladstone general manager said the company hopes that disputes will not escalate saying: “If  we were to lose a large percentage of our workforce that of course would have an impact, and that would be different from the situation we’re in now.”

Construction, Forestry, Mining and Energy Union members might stop working on the Curtis Island LNG projects, which will be known after this week’s vote, with more unions considering the same path, as they are looking to work three weeks before having one week off, instead of four.

Even though Bechtel, that is employing about 8000 workers on its LNG projects,  isn’t experiencing delays, analysts doubt that the projects will start according to plans, feeling that the dispute is already hampering the construction.

LNG World News Staff, July 18, 2014; Image: Bechtel