The $35 billion contract, which would be the largest ever signed between China and Australia, will involve supplying three million tonnes of LNG per year to China's first receiving terminal. A decision is expected in about 70 days.

Australia has been exerting all the diplomatic and financial muscle it can muster to win the lucrative Chinese contract. Australia is keen to lessen its dependence on Japanese markets, which seems to be in terminal decline while the rise of China looks inexorable.

To underscore its efforts, last week the WA Government and gas industry officials played host to influential members of the Chinese media.

WA is confident it can win because of its superior infrastructure, significant gas reserves and the latest technology. If WA does win the contract, Woodside Petroleum said it would add a fifth LNG gas train that would make it one of the world's largest oil and gas facilities.

However some commentators fear the economic justification of a fifth LNG train could be undermined by the presence of OPEC-style LNG cartel, which is now a distinct possibility, as alluded to by OPEC secretary-general, Mr Ali Rodriguez Araque, during his visit to Australia last week.

While the Chinese have said its contract would go only to one supplier, there have been suggestions that the Chinese would offer three, one million tonne per year contracts to the competing bids from Qatar, BP-backed Indonesia and the NW Shelf.

The presence of a LNG cartel plus the absence of a full contract from China could undermine the argument for the proposed fifth train processing unit, according to industry watchers.