ACTING PRIME MINISTER

LNG SIGNING CEREMONY

I am delighted to announce that Australia and China have this afternoon signed

a liquefied natural gas (LNG) Sale and Purchase Agreement (SPA).

The SPA formalises the $20-25 billion contract under which Australia will supply

over 3 million tonnes of LNG to China’s Guangdong province per year for 25 years.

The agreement was signed by the North West Shelf sellers and by representatives

of the customers.

This LNG contract is a major development in the already strong trade and economic

relationship we share with China. We are also establishing an ‘Australia-China

Natural Gas Technology Partnership Fund’ worth $25 million which will support

our cooperation with China in the natural gas industry.

Embarking on this new partnership is a fitting way to mark the 30th anniversary

of diplomatic relations between our two countries.

This contract comes as the result of the sustained, cooperative efforts of

many parties in business and government. I would like once again to congratulate

all those involved.

Note: The participants in the North West Shelf are Woodside Energy Ltd (operator),

BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia

Pty Ltd, Chevron Texaco Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd

and Shell Development (Australia) Pty Ltd. They come together under their marketing

arm, Australia LNG (ALNG).

Friday, 18 October 2002

Contact: Office of the Treasurer

Phone: (02) 6277 7340