The Government has welcomed the signing today of the biggest single LNG sales and purchase agreement by annual volume in Australia's history.
The binding agreement will see Australia-Pacific LNG (Origin Energy and ConocoPhillips) supply 4.3 million tonnes of LNG per annum to China Petrochemical Corporation (Sinopec) for 20 years from 2015 from its proposed LNG project in Gladstone.
Minister for Resources and Energy, Martin Ferguson AM MP, witnessed the signing in Brisbane today, which also included a Subscription Agreement to facilitate Sinopec's 15 per cent ownership interest in the project, subject to foreign investment and other regulatory approval processes.
"Today's agreement is another positive step forward for the APLNG project," Minister Ferguson said.
"Deals like this one put Australia on track to be one of the world's largest suppliers of LNG in coming years.
"The APLNG project has the potential to significantly expand the burgeoning coal seam gas to LNG industry on Australia's east coast and cement Gladstone's place as a key LNG hub.
"Queensland's sanctioned and proposed coal seam gas to LNG projects have the potential to generate over $50 billion in investment, hundreds of billions in exports, and thousands of Queensland jobs.
"Increasing our supply of LNG to China will also help reduce emissions and help ensure rising energy demands are met with cleaner fuel sources.
"This agreement is another example of Australia's growing trade relationship with China. China is Australia's second-largest customer for LNG and this deal with Sinopec brings new and existing LNG contracts with China to over 15 million tonnes per annum.
"The 2010 World Energy Outlook forecasts that China's demand for gas could increase by 5.9 per cent per annum between 2008 and 2035, which compares to OECD demand growth of 0.5 per cent per annum over this period. This growth would take China from 2.7 per cent of global gas consumption in 2008 to 8.7 per cent by 2035.
"Our proximity and history as a secure supplier means that Australia is well placed to meet the energy needs of our Asian neighbours, including China, in the decades ahead."
Today's agreements were signed by Mr Zhang Yaocang, Executive Vice President of Sinopec, Mr Grant King, Managing Director of Origin Energy and Mr Ryan Lance, Senior Vice President Exploration and Production - International of ConocoPhillips.