Regional LNG: Howard to lure California to buy Aussie?s LNG

Australian Prime Minister John Howard will visit California to help drum up support for a multibillion-dollar natural gas deal, The Age reported Wednesday.

Howard said he would join BHP Billiton chairman Don Argus and other senior BHP managers at a meeting with California Governor Arnold Schwarzenegger to discuss a proposed LNG terminal and supply deal.

"I will be calling on the Governor of California," Howard told Parliament. "The purpose of this call is to join BHP Billiton . . . to lobby for the company to develop an offshore terminal to permit Australian LNG to be supplied to southern California."

Howard said the contract would run over several decades and be worth more than A$15 billion to the Australian economy.

Howard will also hold talks with US President George Bush to push the Australia-US free trade agreement.

US LNG imports are expected to increase tenfold over the next six years, and total US energy consumption is expected to surge by about 32 per cent over the next two decades.(*)