French LNG faces strike action: press

A French trade union intends to launch strike action this week in a move that could affect LNG terminals and underground reserves, just as France contends with reduced gas imports from Russia's Gazprom, Reuters reported June 27.

The CGT union is demanding a wholesale pay rise and pension increases across the workforce at France's two leading energy utilities: EDF and Engie.

France has four large-scale LNG terminals at Fos Tonkin, Montoir, Fos Cavaou and Dunkerque. Nuclear generally dominates the French energy mix, but around a dozen of the country's 56 nuclear reactors are currently offline for maintenance and repairs. Around 1.5 TJ of natural gas was purchased for the French energy supply in 2020, according to the International Energy Administration.

Any strike action could impact EDF and Engie's ability to cover the nuclear outages, particularly with LNG sourced from global markets. Reuters reported June 24 that EDF was seeking up to 12 LNG cargoes a year for delivery in 2023 onwards, in a tender organised by Italian energy group Edison. The cargoes were sought on a delivered ex-ship basis at Dunkirk LNG terminal, with prices linked to the French gas hub.

With the conflict in Ukraine showing no sign of a near end, France is considering reopening a coal-fired power plant that closed just months ago in a frantic bid to ease the forthcoming energy crunch. The 600-MW Emile Huchet power plant, situated in Saint-Avold, east France, could be brought back online this winter.