Starting from 2005-06, the Northwest Shelf venture, operated by Woodside Petroleum, will supply 3 million tonnes of LNG a year for 25 years in what Prime Minister John Howard described as "Australia's largest single export deal".
The contract will probably lead to a A$1.5 billion investment in a fifth LNG processing train at the venture's Burrup Peninsual facilities, he said.
Woodside shares responed to the news with their biggest one-day gain in 13 years, climbing as much as $1.07, or 8.2%, to $14.05. BHP Billiton, another of the joint venturers, gained as much as 11c, or 1.2%, to $9.
Woodside, BHPB, BP, ChevronTexaco, Royal Dutch/Shell and Japan Australia LNG each own one-sixth of the Northwest Shelf project.
China's official Xinhua news agency said that in return for rewarding the contract to Australia, CNOOC Ltd would develop natural gas in Australia.
China also awarded a 2.5Mtpa LNG supply deal for the country's second terminal, to be built in Fujian province, to Indonesia, Xinhua said.
The deal will underpin development of the Tangguh field in Irian Jaya, which is half owned by BP. Shipments will begin in 2006.
