Media release
Thursday 8 August 2002 / MVT094/2002
China LNG Delivers Australia's Largest Ever Trade Deal
An Australian consortium has secured Australia's largest ever trade
deal, with the announcement Australia would supply China's first
LNG project, worth up to $25 billion, Trade Minister Mark Vaile
said today.
Mr Vaile said North West Shelf Venture (NWSV) would supply over
3 million tonnes per year of LNG to China over 25 years, beginning
in 2005.
"Under the deal, announced today, NWSV will earn for the Australian
economy between $700 million and $1 billion each year for 25 years,"
Mr Vaile said.
"LNG will be sourced from the North West Shelf gas fields off Western
Australia and shipped to the Guangdong province in China for use
in power generation."
"Guangdong is the first province in China to build an LNG project
and Australia is now well placed to compete for future contracts
as Chinese demands for clean-burning LNG grow in line with their
rapid development agenda."
Mr Vaile said NWSV will also create thousands of new jobs along
the Pilbara Region's north-west coastline as new infrastructure
is developed on the Burrup Peninsula to service the project.
"Infrastructure development is expected to inject approximately
$1 billion into the economy over three years."
Currently Australia's existing LNG export, to Japan, contributes
almost $2.6 billion to our domestic economy.
"The supply to Guangdong will boost Australia's LNG export earnings
to around $3.5 billion per year, and add around 15 per cent to the
value of Australia's total exports to China, based on the average
value of the last three years."
Mr Vaile said today's announcement represents a huge step forward
in promoting a long-term energy partnership between China and Australia.
