China Eyeing More LNG Contracts In Australian Gas Fields  

There are reports out of Beijing that more Australia-China gas deals could be on the way - there seems to be quite a stick and carrot act going on lately.

Chinese oil giants are in talks with Australian partners to import more Liquefied Natural Gas (LNG) and equity options in major Australian gas fields, the Chinese media today said.

If the talks are fruitful, Chinese oil companies, including China National Offshore Oil Corp (CNOOC) and SINOPEC, may also buy equity in some of Australia's largest gas projects, such as Gorgon, Browse and Sunrise, media quoted senior officials as saying. The deal would make Australia China's largest supplier of LNG. The country has already clinched a record-breaking 19 billion US dollar deal to ship the super-cool, condensed fuel to a CNOOC terminal in South China's Guangdong province for 25 years from 2006, 'China Daily' reported.

"We will further explore cooperation in projects such as Gorgon and Browse," Minister of the National Development and Reform Commission Mai Kai said. "We are making progress. We pay special attention to cooperation with Australia as we have had successful cooperation before. We hope Australia cherishes the market opportunity and continues to deepen the co-operation".

The Gorgon Project, located off the northwest coast of Australia, is estimated to have gas reserves of 40 trillion cubic feet, nearly one-third of Australia's proven total. The Browse gas project is estimated to have gas reserves of more than 20 trillion cubic feet. Sunrise in the Timor Sea has a reserve of more than nine trillion cubic feet.