29 February 2008

Government Welcomes Woodside-CPC Corporation Taiwan LNG Deal

Today I participated in a signing ceremony to acknowledge Woodside’s Key Terms Agreement with the CPC Corporation Taiwan for the sale of liquefied natural gas (LNG) to Taiwan.

This preliminary Agreement, which the companies entered into and announced last November, forms the basis for the parties to negotiate an LNG Supply Agreement for the potential sale of 2 to 3 million tonnes of LNG from the Browse LNG Development for a period of 15-20 years, targeted to commence between 2013 and 2015. 

The LNG Supply Agreement has the potential to bring revenues in the order of $35 billion to $45 billion into Australia, equal to the largest-ever single trade deal in Australia’s history.  

The future for Australia’s energy sector is an exciting one. 

We have a reputation as a secure and reliable supplier of clean energy on competitive, market terms.

Demand for LNG imports from the major markets of North Asia is expected to increase from over 90 million tonnes in 2006 to 140 million tonnes by 2020.

As a reliable, secure supplier of LNG with a strong track record, Australia is well placed to meet much of this demand as several projects such as Pluto, Browse and Gorgon come on line. 

Australia’s annual LNG production capacity is on track to expand to more than 60 million tonnes per annum by 2015.

Taiwan is currently Australia’s eighth largest merchandise export market, worth $5.9 billion in 2007.  Major exports include coal, copper, iron ore and aluminium.

Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555