A union coalition has decided to end its strike at Chevron's two liquefied natural gas (LNG) ventures.

The decision effectively averts a crisis that had the potential to disrupt nearly 7 per cent of the world's LNG supplies.

The union coalition, in conjunction with Chevron, has accepted pay and condition proposals put forth by the nation's industrial arbitrator for the Gorgon and Wheatstone LNG facilities. 

This resolution has halted the strikes that had been ongoing for the past two weeks.

The Offshore Alliance says it will now collaborate with Chevron to finalise the agreement.

The new accord marks the conclusion of a contentious six-week wage dispute that had sent LNG prices soaring by as much as 35 per cent in August, only to ease when a similar issue involving Woodside Energy, the country's largest LNG facility, was settled late last month.

The proposed agreement encompasses “significant enhancements” in compensation, job security, fixed schedules, and career advancement, as reported by the Offshore Alliance, which unites two labour unions.

During a brief hearing on Friday, the Fair Work Commission (FWC), which had convened to determine whether it should intervene and terminate the strikes, adjourned proceedings for four weeks, giving both sides time to finalise the deal's terms.

The FWC had strongly recommended the parties accept its proposals to halt the work stoppages in a statement issued on Thursday, despite the fact that the commission possesses the authority to impose a resolution.

Remarkably, no LNG shipments were disrupted, even after a Wheatstone plant malfunction.

The Offshore Alliance had been pressuring Chevron to match the pay conditions established by Woodside in their groundbreaking agreement with the unions. 

This agreement stipulated total remuneration for offshore platform technicians ranging from $350,233 at entry level to $418,337 at the highest rank, according to figures presented by the union to the commission.

The deal is the latest step in the Offshore Alliance's lengthy crusade for higher wages and improved conditions at major LNG sites in Western Australia. 

A 2022 agreement with Japan's Inpex at its Ichthys LNG operation set a precedent for subsequent negotiations with Shell, Woodside, and Chevron.

Shell reached an agreement last year after two months of strikes at the Prelude floating LNG facility resulted in approximately $1 billion in lost exports.

Energy analyst Saul Kavonic anticipates that the Chevron agreement will likely quell most offshore industrial actions in Western Australia, as union agreements, typically spanning around four years, are now in place for the majority of offshore LNG sites.

“We should expect the unions will increase their membership in the wake of the recent successes they have had, and there is still some scope for more union action at the North West Shelf LNG plant and some offshore (floating production storage and offloading units) next year,” he said.

An undisclosed official has reportedly revealed that the union's next priority will be securing agreements at the nearby Woodside-operated floating production storage and offloading vessels Okha and Ngujima-Yin.