The Minister for Resources and Energy, Martin Ferguson AM MP, has welcomed Australia's first ever long-term LNG contract with India, following yesterday's signing of a Sales and Purchase Agreement between ExxonMobil and Petronet LNG.
Minister Ferguson said: "This deal, worth more than $25 billion over 20 years, represents the dawning of a new trading partnership between Australia and India, and brings the Gorgon gas development yet another step closer to fruition.
"I hope this new partnership with India will grow to be as significant as our LNG export trade with our friends in East and North East Asia.
"I would particularly like to congratulate ExxonMobil Australia on closing this very significant deal and acknowledge the company's long and important history of investment in Australia dating back to 1895. We are a country built on foreign investment, and investments which develop our natural resources to the benefit of all Australians will continue to be welcomed by the Australian Government."
Signed yesterday in Perth, the Agreement will see around 1.5 million tonnes of LNG from the Gorgon project sold into India annually over a 20-year term.
The Gorgon LNG project will become the largest single investment ever undertaken in Australia.The project is being developed by the Gorgon Joint Venture, which consists of Chevron (50% and operator), ExxonMobil (25%) and Shell (25%).
The gas fields in the Greater Gorgon area hold more than 40 trillion cubic feet of natural gas and form Australia's largest known gas resource.
The Gorgon project will bring significant economic benefit to Australia, with investment of up to $50 billion - more than the Government's recent economic stimulus package.
The Gorgon project will also provide jobs for up to 6,000 people during peak construction.
Goods and services purchased in Australia for the project are expected to be around $33 billion and Government revenue of about $40 billion is anticipated.