Exxon & China sign $41 billion gas deal

Exxon & China sign $41 billion gas deal

“It’s a statement about the nature of our two economies and the fact that Australia is important to China, just like China is important to Australia,” Australian Resources Minister Martin Ferguson told Reuters in Beijing.

The gas sale agreement between Exxon and PetroChina comes just weeks after Exxon inked a A$10 billion Gorgon LNG sales deal with India’s Petronet, which marked Australia’s first ever LNG contract with India.

The deals, along with regulatory approvals process from the federal government now nearing completion, means that the Gorgon project partners could approve the massive LNG project, located off Western Australia, by early as next month.

The latest Gorgon gas sale would bring PetroChina’s total LNG purchase from the project to a total of 3.25 million tonnes per annum (mtpa) for 20 years — making it the largest buyer of gas from the project.

In the deal signed on Tuesday, PetroChina will buy 2.25 million tonnes per annum (mtpa) of gas from the Gorgon LNG project for a period of 20 years, Ferguson said in a statement. The sale is Australia’s most valuable trade deal ever with China, Australia said, adding that the agreement was a reflection of the strength of Australia’s continuing trade and investment relationship with China. The massive Gorgon LNG project, operated by Chevron Corp which owns a 50 percent stake, is located off western Australia and has a proposed annual output of 15 mtpa. Exxon and Royal Dutch Shell each own a 25 per cent stake in the project.