Howard confirms Australia wins Guangdong LNG supply

Australian Prime Minister John Howard said Thursday he has been advised by the Chinese Premier Zhu Rongji that Australia's Northwest Shelf Venture has won the giant liquefied natural gas project in Guangdong province, China, Dow Jones Newswires reported.

Howard said the contract will be worth between A$20 billion and A$25 billion in export income for Australia.

"This is Australia's largest single export deal," the Prime Minister said.

The North West Shelf is an equal joint venture comprising Woodside, the Royal Dutch/Shell Group, ChevronTexaco Corp., BHP Billiton, BP, and Japan Australia LNG, itself an equal joint venture between Japan's Mitsubishi Corp. and Mitsui & Co.

Starting from 2005-06, the venture will supply over 3 million tons of LNG a year for 25 years, Howard said.

"It is likely to entail an eventual additional investment in a fifth LNG processing train for the Northwest Shelf facilities on the Burrup peninsula, which in itself would be worth about A$1.5 billion," Howard said.

He said the deal is a major and exciting development in the growing trade and economic relationship shared by Australia and China.

"It represents a new energy partnership between our two nations," he said.

Howard noted that the contract follows several years of hard work by many parties.

The LNG contract was a major focus of the Prime Minister's visit to Beijing in May. (*)