Record LNG Supply Deal Signed With China

Australia’s largest ever binding sales contract has been signed by UK-based BG Group and the China National Offshore Oil Corporation (CNOOC). The 20-year deal will see 3.6 million tonnes of LNG shipped to China each year from the proposed Curtis Island plant in Queensland.

The project is expected to generate 5,000 jobs during construction and 1,000 full-time positions. Speaking on
Lateline Business, Queensland Premier, Anna Bligh, said that the deal is a win for the Queensland economy.

‘Depending on world prices…which of course will go up and down from time-to-time this company is set to return some $200 million every year to the Queensland taxpayer royalties.’

Federal Minister for Resources, Martin Ferguson, said that the deal had the potential to cement Australia as a leading energy supplier.

‘We will potentially be the second largest exporter of LNG in the world…in terms of the Asia-Pacific region, Australia’s resources and energy products are exceptionally important and we’re fast emerging as an energy superpower in the region…’

The project still requires state and federal environmental approval, with the final investment decision expected this year. All going to plan, the first stage will be operating by 2014.

Lateline Business, 24 March 2010

Copyright 2014. My Tax Zone.