“In Australia, commissioning of the gas turbine generators at the QCLNG liquefaction plant has begun and, subject to the current risk of industrial action on Curtis Island, we remain on track for first LNG by the end of the year,” interim executive chairman Andrew Gould said in his commentary on BG’s June quarter results.

This revelation comes after Macquarie Private Wealth expressed some surprise that Gladstone LNG project operator Santos did not mention the industrial relations risk on Curtis Island in its quarterly results last week.

“While the project is on schedule for first LNG in the fourth quarter of 2014 and within the Phase 1 $US20.4 billion ($A22 billion) budget, the group needs to deliver a number of important operational activities,” BG said of the QCLNG progress.

“Following the expiration of the agreement between Bechtel and labour unions, the labour unions could undertake lawful industrial action, which could put the overall programme schedule at risk.”

Out of four unions which have been granted protected action ballot orders by the Fair Work Commission, the Construction, Forestry, Mining and Energy Union already has approval from its members to take industrial action.

This protected action ranges from overtime bans to work stoppages for indefinite periods and the CFMEU needs to provide Bechtel – which is building all the plants for the QCLNG, GLNG and Australia Pacific LNG projects on Curtis Island – just three days’ notice.

The CFMEU wants a more family-friendly, three-weeks-on, one-week-off roster as part of its new enterprise agreement negotiations while Bechtel wants to keep the existing four-and-one roster and associated schedules.

BG results

Gould said BG delivered a good set of results in the June quarter. Earnings were up 23% year-on-year to $1.21 billion.

“Exploration and production performance reflects the growing proportion of oil in the portfolio, principally from Brazil, and the deferral of maintenance shutdown activity in the UK to later in the year,” Gould said.

“LNG performance reflects additional cargo deliveries and favourable realised prices. There is no change to our full year E&P production volume and LNG operating profit guidance, with lower E&P volumes and fewer LNG cargoes expected in the second half of 2014.”

Group-wide production was down 10% year-on-year to 591,000 barrels of oil equivalent per day with BG saying this was primarily due to declines in the US and Egypt.

However, the LNG segment had a 44% lift in operation profit based on additional cargo deliveries and “favourable realised prices”.

BG’s quarterly did not discuss any efforts to find a replacement for its CEO Chris Finlayson, who unexpectedly announced his resignation in April.