Multi-Billion Dollar LNG Deal Confirms Australian Credentials

Deputy Prime Minister and Minister for Trade, Mark Vaile, today welcomed the announcement by Chevron Australia that it has signed a multi-billion dollar LNG deal with the major Japanese utility company, Tokyo Gas Ltd.

Mr Vaile said "This is a great deal for the Gorgon Project, a great deal for Chevron Australia, and a great deal for Australia. It confirms Australia's position as a leading, reliable, and trusted supplier of LNG to Japan, the region and the world."

Under the Heads of Agreement Chevron Australia will sell 1.2 million tonnes per annum of Gorgon LNG production over a 25 year period, starting in 2010.

"Japan has been Australia's largest export market for over 30 years with over $25 billion worth of Australian product exported to Japan last year," Mr Vaile said.

"The Gorgon sale into Japan, the world's largest LNG market, is a significant further step in expanding our relationship and confirms Australia's credentials as a leading LNG supplier to North Asia.

"I also very much welcome the news that the two parties involved in this deal are discussing the potential sale and purchase of an equity interest in the Gorgon Project. While this will obviously require further negotiations, it is another demonstration of the continuing strength of our relationship with Japan.

"Australia and Japan are undertaking a study into the feasibility of a bilateral Free Trade Agreement. This LNG supply deal underlines the benefits of further integration.

"An FTA with Japan would be of enormous benefit to the people of both countries and will build further on the strong complementarity between our two economies.

"I congratulate Chevron Australia and Tokyo Gas Ltd on reaching this major agreement and wish both companies a very successful and rewarding partnership," Mr Vaile said.

Contacts: Richard Forbes 02 6277 7420