North West Shelf venture shortlisted for Guangdong liquefied natural gas project

18/01/02
State Development Minister Clive Brown has welcomed the announcement that Western Australia's North-West Shelf Venture (NWSV) has been shortlisted by the Chinese Government to provide three million tonnes of per year of liquefied natural gas (LNG) worth about A$1billion annually.
"A final decision on the successful bidder should be made by the middle of the year, with the contract commencing in 2005," Mr Brown said.
"If WA wins the bid, it will result in a fifth LNG train being built at the North-West Shelf project plant in the Pilbara, in addition to the fourth train presently under construction.
"This has enormous implications for the State, providing impetus to increased development and LNG exports, and boosting employment and infrastructure in the Pilbara."
The Chinese Government is conducting a pilot LNG project in Guangdong province, consisting of the supply of LNG to an import terminal and major gas pipelines, to supply gas to industrial and domestic customers.
Mr Brown said he was confident of NWSV's ability to compete with any LNG project in the world.
"WA is keen to supply gas to this first LNG project in China and being shortlisted is a major step to achieving this objective," he said.
"This first step towards what we hope will be a successful deal with China on LNG would add another important dimension to already very significant resources trade relations with China, marked in particular by iron ore and alumina trade.
"Considering that six projects from Russia, Yemen, Malaysia, Qatar, Australia and Indonesia submitted bids, this confirms WA competitiveness as a source of gas for China, which will become a rapidly growing market for LNG, once the Guangdong project comes to fruition.
"I am confident the supply of LNG from this State, through an expansion of an existing project, will be both world competitive and reliable.
"The State has always believed that a fair, objective and competitive selection process, as we are seeing in China, will favour WA as a supplier and that China will be assured, through this process, of the complete success of its pilot project."
WA Government and Australian LNG industry representatives have been earnestly talking to the Chinese Government since late 1997, regarding the supply of LNG to China for power generation and urban gas reticulation in south-eastern coastal provinces and Hong Kong.
In December 1999, the Chinese State Council formally listed the Guangdong LNG Project for development.
The NWSV was represented by Australia LNG Pty Ltd as marketing agents for the six participants of Australia's North-West Shelf project, which is already a key supplier to the global LNG market.
The project is equally owned by BHP Billiton Petroleum (North-West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd,
Japan Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Proprietary Limited and Woodside Energy Ltd.
Minister's office: 9220 5050