Howard to lobby China in a bid to win LNG contract

Australian Prime Minister John Howard said on Friday he would promote Australia's bid to supply gas to China's first liquefied natural gas terminal during a visit to China, arguing Australia was the most reliable bidder.

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 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.

"This is the first of potentially a number of major energy contracts and it will be an important base for the expansion of the economic relationship," Howard said during a national television interview ahead of his May 21-24 visit to China.

"And what I'm arguing and will be arguing is that price is not the only thing. It is important, but it is security and continuity of supply and maturity of production and capacity to deliver that will be very important," Howard said.

"We are a very mature reliable supplier of natural gas. We will be able to make claims and indeed offers in relation to security and stability of supply that our competitors won't be able to do."

Trade Minister Mark Vaille said in April he expected China would make a decision on the contract "sometime in late May".

Australia LNG is a marketing agency for the North West Shelf project, operated by Woodside Petroleum Ltd .

The other partners are BHP Billiton , Japan Australia LNG Pty Ltd , and local units of Royal Dutch/Shell , ChevronTexaco Corp and BP. (*)