Regional LNG: NW Shelf LNG expansion hit by labor dispute

Work on an expansion of the North West Shelf liquefied natural gas operation in Western Australia remained at a standstill for a second day Tuesday following the escalation of a labor dispute, Dow Jones reported.

Some 1,500 workers walked off the job Monday and Tuesday in support of striking contract cleaners.

The cleaners, and other general service workers, are striking over various issues including safety concerns, but other workers decided to join in the dispute after management stepped in and arranged to have the toilets cleaned over the weekend.

"We hope they resolve it quickly and then it won't have a significant impact," a spokesman for the operator of the North West Shelf, Woodside Petroleum Ltd. , told Dow Jones Newswires.

Woodside isn't directly involved in the dispute.

The workers are due to meet Wednesday morning to decide whether to return to work.

The partners in the North West Shelf are in the midst of constructing a fourth production train at the site that will increase annual capacity by 4.2 million tons to 11.7 million tons. The first LNG from the new processing train is scheduled for mid-2004.

Woodside is an equal partner in North West Shelf with the Royal Dutch/Shell Group , ChevronTexaco Corp., BHP Billiton Ltd. , BP PLC and Japan Australia LNG, an equal joint venture between Japan's Mitsubishi Corp. and Mitsui & Co.(*)