Media Release

Monday, 20 January 2003 - MVT01/2003

Korea Gas Deal a Vote of Confidence in Australian LNG Supply

Australia has won a seven-year contract to supply Korea with more than three million tons of Liquefied Natural Gas, Trade Minister Mark Vaile announced today.

Mr Vaile welcomed a visit by Korean Gas Corporation (KOGAS) President Kim Myung-Kyu who signed a letter of intent in Perth on Friday.

"The $1 billion contract is Australia's first multiple-year contract for the supply of LNG to Korea and is a vote of confidence in Australia's long record as a competitive, stable and reliable supplier of Korea's key resource needs, particularly in the energy sector," Mr Vaile said.

"The deal means that Korea now joins Japan and China as major buyers of Australian LNG."

Under the terms of the deal the marketing arm of the North West Shelf Venture (NWSV), Australia LNG (ALNG) Pty Ltd, will sell the Korean Gas Corporation (KOGAS) half a million tons of LNG annually between 2003 and 2009.

"This deal follows the awarding by China last August of a landmark contract for Australia to supply $25 billion of LNG to China over the next 25 years and further demonstrates the strength of the Australian Government's standing in Asia," Mr Vaile said.

"The Australian Government strongly supports the efforts of Australia's LNG export industry to market its product in North Asia. Korea is Australia's fourth largest trading partner and our second largest market for energy and minerals products. Exports of these commodities to Korea were worth $5.5 billion in 2001.

"With Korea's National Energy Plan projecting an increase in demand for LNG of 4.8 per cent, Australia is in a good position to be able to meet Korea's energy demands well into the future. I look forward to the successful conclusion of negotiations on the contract in the coming weeks."

Media Contact: Robyn Bain +61 02 6277 7420