SYDNEY, Sept 8 Reuters Workers at Chevron39;s liquefied natural gas LNG projects in Australia went on strike on Friday after talks broke down, potentially disrupting output from facilities that account for over 5 of global supply.

No further talks were scheduled between the unions and the U.S. energy major, according to the website of the Fair Work Commission, Australia39;s industrial umpire, which had mediated five days of negotiations.

Australia is the world39;s biggest LNG exporter and its main buyers are in Asia. The dispute over wages and conditions at Chevron39;s Gorgon and Wheatstone operations has supported British and European gas prices, as traders anticipate lower Australian supplies would intensify competition from other sources.

European gas prices spiked as much as 12 after Friday39;s strike news.

The work stoppages, designed to escalate in coming weeks, come after domestic producer Woodside Energy averted strikes at its nearby North West Shelf LNG facility last month in a deal with the same unions that raised salaries and made it harder to hire contractors or change rosters.

Unfortunately, following numerous meetings and conciliation sessions before the Fair Work Commission, we remain apart on key terms, a Chevron spokesperson said. The company said unions were demanding terms above and beyond others in the industry, without elaborating.

Brad Gandy, a spokesperson for the Offshore Alliance, said the union coalition had agreed in good faith to the…