Howard says "difficult" to win China LNG deal: Report

Australian Prime Minister John Howard said it would be "very difficult" for Australia to win a contract to supply gas to China's first LNG terminal, but pledged to argue for the bid this week in Beijing, Reuters reported Tuesday.

"It's going to be quite difficult, I would say that. I think it's very difficult," Howard was quoted as saying by the newswires in Singapore during a brief stopover enroute to his visit to China.

"I think Australia has a very good case both on grounds of reliability and efficiency and also what this might mean to the long-term prospects and the long-term debts of the economic relationship between our two countries," he added.

State giant China National Offshore Oil Corp shortlisted three bidders -- Australia LNG Pty Ltd, BP Plc in Indonesia, and Qatar's Ras Laffan Co -- early this year to supply the liquefied natural gas (LNG) terminal in Guangdong province in southern China.

Australia has estimated the initial 25-year supply contract for the terminal to be worth A$750 million ($410 million) a year.

Howard said he would argue strongly for the Australian case to win the contract during his visit to China, where he is scheduled to meet both Chinese President Jiang Zemin and Premier Zhu Rongji. The visit begins later on Tuesday.

"I take the view that it's my responsibility, my job, to give it the best shot I can and to argue very strongly," Howard said. (*)