LNG fund to further build WA-China relationship

24/10/03
Another important milestone in Western Australia's growing relationship with China was achieved today, with State Development Minister Clive Brown signing an agreement to create the $25million Australia-China Natural Gas Technology Partnership Fund.
The agreement was also signed by China's National Development and Reform Commission chairman, Ma Kai; Federal Resources Minister Ian Macfarlane; and North West Shelf Australia LNG President John Banner, in the presence of Prime Minister John Howard, Chinese President Hu Jin Tao and Premier Geoff Gallop.
Mr Brown said the fund would promote liquefied natural gas (LNG) as a clean fuel for China and was another important step in the development of Chinese markets for WA gas.
"History will view today as a landmark day in the development of Western Australia's gas industry," he said.
"I am pleased to sign an agreement that will further develop energy co-operation between China and WA and create further jobs and opportunities within WA's oil and gas sector.
"Research by the Partnership Fund will increase knowledge of all aspects of the natural gas production-to-consumption chain, including liquefaction, transport, regasification, distribution, engineering and procurement."
The Australia-China Natural Gas Technology Partnership Fund between Australia and China is part of the historic agreement reached last year that will see WA supply LNG worth $25billion to China over 25 years. The fund has been established under the terms of the Partnership Declaration signed on October 18, 2002 between Australia and China.
Mr Brown said the State and Federal Governments had each committed $7.5million to the fund, with $10million being contributed by the North West Shelf Joint Venture partners.
"This fund demonstrates the shared desire of industry and the Governments of China, WA and Australia to establish genuine, long-term partnerships within the energy sector, that create positive economic and environmental outcomes," the Minister said.
An executive council has been formed to manage the Australia-China Natural Gas Technology Partnership Fund. The council includes the WA Minister for State Development; the Federal Minister for Industry, Tourism and Resources; a Ministerial-level representative from China; and a senior representative of NWSALNG. The fund will be supported by a secretariat based in Perth, with a representative in China.
Minister's office: 9222 9699