On Thursday, Australia’s industrial arbitration offered procedures to Chevron (CVX.N) and unions to resolve a long-running dispute over wages and conditions at two liquefied natural gas (LNG) projects. These strikes have roiled world gas markets and have caused significant disruption.

The Fair Work Commission (FWC), which has the jurisdiction to impose a settlement, stated that it “strongly recommended” parties accept its suggestions to end work stoppages that started on September 8 at the Gorgon and Wheatstone LNG operations. These operations supply approximately 7% of the total worldwide LNG market.

Gas prices increased by as much as 35% in August due to the potential for extended disagreements at three LNG operations in Australia, the leading LNG exporter in the world. However, markets began to calm down after a dispute involving the largest LNG plant in the country was settled.

The commission’s suggestions were made public a day after the most recent negotiations between Chevron and a union alliance regarding strikes at the Wheatstone and Gorgon plants, which resulted in a deadlock.

Before a hearing that is set to take place later in the day on Friday, the two parties have until 9:00 AM on Friday (2300 GMT, Thursday) to decide whether or not they will accept the commission’s recommendations.

The head of the Florida Fish and Wildlife Conservation Commission, Bernie Riordan, said, “I strongly recommend that the parties adopt the recommendations… which will hopefully resolve these disputes.”

Both Chevron and the unions have indicated that they will investigate the recommendations.

Riordan stated in the filing, “In my view, the parties are close to achieving their desired outcome of registered enterprise agreements to cover the wages and employment conditions.”

The tribunal has the authority to end the strikes, which have now grown to two work stoppages lasting 24 hours each over the weekend.

Chevron has stated in the past that it will not comment on the strikes and will instead concentrate on ensuring reliable operations whenever disruptions occur.

HEARING THIS FRIDAY

According to energy researcher Saul Kavonic, the arbitration hearing will most likely occur despite the commission’s efforts to prevent it from happening. The unions are continuing to prepare for the hearing that will take place on Friday in Sydney, according to a union official who declined to be named. Members stationed in Western Australia are already on their way to the hearing.

After more than nine months of negotiations, Chevron requested this hearing in the hopes that the commission would declare that the negotiating has reached an “intractable” stage. If the commission makes this declaration, it will put a stop to the strikes and allow the tribunal to determine the terms and conditions of employment.

In a letter to the commission, the unions claimed that the talks are not intractable and that the overall remuneration for some roles at Chevron remains below analogous roles at Woodside (WDS.AX), where the firm and unions reached an agreement just one month ago.

Chevron issued a statement on Thursday stating that the company had “meaningful negotiations” but that unions had wanted conditions that were superior to those of the market.

According to Riordan, Chevron and the unions “spent countless hours at the negotiating table,” and as a result of those discussions, an agreement was reached on most of the terms.

“It would be a pity and very frustrating to simply throw out these agreed-upon positions and have the parties return to their respective logs of claims for any future arbitration,” Riordan said. “It would be a waste of time.”