French Labour Strike Reduces Dunkirk LNG Terminal Delivery, Pressuring EU Gas Supply
Impact of Labour Strike on French Energy Sector and European Gas Supply
Reduction in Dunkirk LNG Terminal Delivery Capacity
PARIS, Sept 15 (Reuters) - A 24-hour labour strike in France's power sector on Tuesday is expected to reduce delivery capacity at the Dunkirk LNG terminal to 4 gigawatt-hours per day from 0700 GMT on Tuesday, Fluxys data showed.
The terminal normally delivers a minimum of 9.4 GWh per day, Fluxys data showed.
Reasons Behind the Strike
Union Actions and Targeted Companies
Unions called a strike for Tuesday at state-owned nuclear operator EDF, Belgian gas terminal operator Fluxys and French gas terminal operator Elengy to protest a recommendation from the French Court of Auditors to curb employee benefits such as access to cheaper power.
Significance for European Gas Supply
France is one of Europe's largest exporters of gas across the continent and the strike comes as Europe scrambles to refill its gas storage ahead of winter, with Germany and other gas-reliant countries lagging behind European Union storage targets.
Operational Disruptions and Market Impact
Effect on LNG Terminal Operations
The disruption is likely to affect sendout ability only, as no cargoes have been scheduled to arrive at Dunkirk and none were seen redirected to other terminals, LSEG analyst Dzmitry Dauhalevich said.
A spokesperson for Elengy said there were no disruptions at the two Fos terminals or the Montoir terminal.
Electricity Production Impact
The strike took 6.5 gigawatts of electricity offline overnight on Monday, EDF data showed.
Employee Benefits at Stake
Discounted Energy Rates for Workers
Workers and retirees in the French energy sector pay discounted rates for gas and electricity, which their unions view as a core part of their compensation package.
Reporting Credits
(Reporting by Forrest Crellin; Editing by Tom Hogue and Susan Fenton)
