Biggest Australian trade deal of $60 billion signed

Australia's biggest trade deal - $60 billion

Australia signed biggest deal to sell gas to China (Picture: Bloomberg)

The world’s first fully termed sales contract for Liquefied Natural Gas (LNG) sourced from coal seam gas (CSG) has been signed between Britain’s BG Group and the state-owned Chia National Offshore Oil Corp (CNOOC).

“This deal makes Australia the world leader in CSG-based LNG industry and it brings us one important step closer to opening up a new LNG province on Australia’s east coast in Queensland … this project will provide enormous wealth and employment to out country for many decades to come” said Resources Minister Martin Ferguson, who witnessed the signing in Beijing.

LNG is proving to be the resource of the future where massive investments are being planned and approved in the town of Gladstone, located approximately 550km north of Brisbane and 100km south of Rockhampton in the mid-north coast of Queensland, Australia.

The deal is expected to deliver up to 8,500 construction jobs and another 1,000 operational jobs. It dwarf’s last year’s ExxonMobil’s $50 billion sales contract with PetroChina for the supply of LNG from the massive Gorgon project in Western Australia.

CNOOC’s 20-year deal with BG Group was proposed in May 2009 and will allow CNOOC to buy 3.6 million tonnes per annum of LNG from British firm’s Quensland Curtis CSG-to-NG project in Gladstone.

Among several other large LNG projects planned in the Gladstone region is the Royal Dutch Shell’s LNG processing facility on Curtis Island.

Queensland Premier Anna Bligh said Federal and State environmental approval for the project was expected by mid-2010. Ms Bligh said the BG Group / CNOOC deal was Australia’s largest LNG sales contract between two entities and placed Queensland at the centre of the growing industry.

“We are now a leading player in the global LNG market,” Ms Bligh said in a statement.

Download an independent Special Report on Gladstone.

Related media coverage of this mega trade deal:

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