Industrial action was expected to reduce French electricity supply by up to 5 gigawatts on Tuesday as energy sector unions stage a 24-hour strike in protest over calls to curb employee benefits such as access to cheaper power.
France's biggest liquefied natural gas (LNG) terminal was forced to cut its delivery capacity on Tuesday, potentially reducing supplies outside the country, after workers in the French energy sector began a strike to protest a proposed change to employee electricity discounts.
The Dunkirk LNG terminal is expected to reduce delivery capacity to 4 gigawatt-hours (GWh) per day, down from a minimum of 9.4 GWh per day, data from terminal operator Fluxys showed.
Three other LNG terminals in the country – two at Fos in southern France and one in Montoir in western France – ere operating as normal, operator Elengy said.
France is one of Europe's largest exporters of gas to the rest of the continent and the strike comes as Europe scrambles to refill its gas storage before winter, with Germany and other gas-reliant countries lagging behind European Union storage targets.
The strike is set to add pressure on gas prices that are already trading at their highest levels since late 2022 due to supply disruptions from the Middle East and low European storage levels.
The disruption is likely to affect sendout only by an estimated 476 GWh a day, as no cargoes have been scheduled to arrive at Dunkirk and none were redirected to other terminals, LSEG analyst Dzmitry Dauhalevich said.
However, some of this volume might be offset by increasing sendout from terminals in the Netherlands, Belgium and the Montoir terminal, he added.
The strike had also cut French electricity supply by 6.2 gigawatts by midday, data from utility EDF showed. That equals about 13% of total power demand in midday hours, but does not affect the country's status as a net exporter, data from grid operator RTE showed.
EDF said 59% of its work force in the electricity and gas industries union – or about 38,000 people – took part in the strike action by midday on Tuesday.
The turnout is the highest in decades, eclipsing the number of workers on strike in 2011 when changes to the subsidy were also being considered.
Unions called the 24-hour strike at state-owned nuclear operator EDF, Belgium's Fluxys and French gas terminal operator Elengy to protest a recommendation made in July by the French Court of Auditors to curb employee benefits including access to cheaper power.
Workers and retirees in the French energy sector pay discounted rates for gas and electricity, which their unions view as a core part of their compensation. The court estimated this cost EDF over €700 million ($807.7 million) in lost revenue in 2024.
Speaking on France 2 TV, delegate energy minister Maud Bregeon said auditors had recommended taxing the employee benefit at a higher rate, adding that she planned to discuss the matter with unions later today.
(FRANCE 24 with Reuters)
