Unions extend blockage at three French LNG terminals for second week - sources, media (updated)

Fluxys Belgium SA

14/03/2023 20:27

(Adds extension of strikes, adds London dateline)
    By Marwa Rashad
       LONDON/PARIS, March 14 (Reuters) - Blockages at the
three French liquefied natural gas (LNG) terminals will be
extended for a second week as part of a national protest
movement against President Emmanuel Macron's pension reform
plan, two trading sources and French media reported on Tuesday.
    The closure of the three terminals operated by Engie
 ENGIE.PA  subsidiary Elengy, which started on March 7, was
initially planned to end on Tuesday, March 14, but has been
extended to March 21. The blockage was expected to reduce French
LNG send-out of gas to the grid by around 0.5 billion cubic
meters.
    The two sources also said that the strike disrupting the
Dunkirk LNG terminal operated by Fluxys  FLUX.BR , is likely to
follow suit, meaning the four French LNG terminals will remain
at a halt.
    Closure at this terminal has already been renewed on Monday
evening until Friday. The company's website confirmed it was a
"Force Majeure by strike action", where loading was halted and
delivery capacity was reduced to the minimum.
    Earlier on Tuesday, a union official told Reuters that a
vote will determine if blockages are renewed or not, adding that
storage of gas was also blocked until the withdrawal of the
pension reform.
    French media have also reported that the union have voted to
extend the strike. 
    Several LNG ships heading to France have changed course to
other terminals in Britain, the Netherlands and Spain, since the
strike action started.
    Before the decision to extend the strikes, markets did not
show major signs of concern, with European gas prices falling
for two consecutive days, and many analysts said European power
systems could cope with low French nuclear generation if
renewable power generation is strong.
    The strike also comes at a time where European gas storage
remain at relatively comfortable level of 56.50% full.
    However, closure of the terminals for another week will
significantly impact France's ability to export gas to
neighbouring countries. 
    Since end January, France has been hit by rolling strikes
against the very unpopular pension reform, with key refineries
blocked, railway transport disrupted and garbage piling up on
the streets of Paris and other cities.
    The next step, scheduled for Wednesday, is the convening of
a joint committee of lower and upper house lawmakers to agree on
a definitive version of the text. That day, unions plan a new
day of strikes and protests.
    The last and crucial moment would be a final vote, Thursday,
in both houses.
    Macron's party needs the support of Les Republicains to
ensure the bill is approved. But the conservative lawmakers are
very divided on the issue and there are even cracks in the
presidential camp, with Macron's former environment minister
Barbara Pompili opposing it.   

 (Reporting by Marwa Rashad in London, Forrest Crellin and
Benoit Van Overstraeten in Paris; Editing by Kirsten Donovan and
Marguerita Choy)
 ((Forrest.Crellin@thomsonreuters.com;))