The Prelude floating liquefied natural gas (LNG) export facility offshore Western Australia has canceled cargo deliveries through mid-July as labor unions representing workers on the vessel initiate work stoppages.

Shell plc told multiple news outlets this week that it has notified customers of the cancellations, citing the impacts of a strike that started on June 10. Meanwhile, the Offshore Alliance, a partnership between the Australian Workers’ Union and the Maritime Union of Australia, said Shell announced its intention “to shut down production during the midst of bargaining” last week.

The Prelude facility produces 3.6 million metric tons/year (mmty) of LNG. The lack of cargoes from the vessel in the coming weeks stretches a global market already short on supplies. An...