17/05/06
Premier Alan Carpenter says today will go down as one of the most significant days in Western Australia's rich economic history, with the loading of the first shipment of Liquefied Natural Gas (LNG) from the Pilbara to China.
The North West Seaeagle is scheduled to leave the Pilbara town of Karratha for southern China early tomorrow, carrying 125,000m3 of LNG - marking the first export phase of Australia's largest ever single trade deal.
The shipment comes four years after WA was successful in its bid to supply LNG to China for 25 years, in a contract worth up to $1billion a year.
In Karratha to farewell the shipment today, Mr Carpenter said it signified the start of a 25-year trade relationship between the North West Shelf Venture and China's Guangdong Dapeng LNG Company Ltd.
"Today's cargo is the first in a 25-year agreement that will see approximately 50 cargoes delivered from WA to China each year," the Premier said.
"This is the first contract by China for LNG and the inaugural shipment from WA will be the first LNG sent to China from anywhere in the world.
"The beginning of the contract is a tribute to all involved with the North West Shelf Venture."
The contract has an estimated value of A$25 billion, with more than 3.3million tonnes of LNG being shipped to China each year.
"China is now WA's second largest trading partner and the LNG contract will further strengthen our expanding economic relationship," Mr Carpenter said.
"It also cements the State's position as Australia's leading exporter, with latest trade figures showing WA's share of the nation's exports at 31.2 per cent."
The Premier said successive State Governments had strongly supported industry's efforts in China to win the landmark contract.
"The sale of LNG to China is an outstanding example of Government and industry working together to achieve a common goal," he said.
"I would like to acknowledge particularly the significant efforts of both Richard Court and Geoff Gallop in their former roles as Premier and their pivotal part in WA's successful bid for the gas contract."
The Woodside-operated North West Shelf Venture is Australia's largest resource project, with investment in onshore and offshore oil and gas facilities totalling more than A$19billion.
The venture is owned by six companies: Woodside, BHP Billiton, BP, Chevron, Japan Australia LNG (MIMI) and Shell. The China National Offshore Oil Corporation, or CNOOC, is also a member of the venture but does not have an interest in its infrastructure.
Premier's office: 9222 9475
