Australia, India sign AUD 25 billion Gorgon LNG Deal

New Delhi, Aug.19 (ANI): Australia and India have signed their first ever long-term LNG contract. A Sales and Purchase Agreement between ExxonMobil and Petronet LNG of India was completed on August 10, 2009.

Welcoming the agreement, Australia's Minister for Resources and Energy, Martin Ferguson AM MP said: "This deal, worth more than AUD 25 billion over 20 years, represents the dawning of a new trading partnership between Australia and India, and brings the Gorgon gas development yet another step closer to fruition".

"I hope this new partnership with India will grow to be as significant as our LNG export trade with our friends in East and North East Asia" he added.

Signed on 10 August in Perth, the Agreement will see around 1.5 million tonnes of LNG from the Gorgon project sold into India annually over a 20-year term.

According to a press release of the Australian High Commission here, the Gorgon LNG project will become the largest single investment ever undertaken in Australia. The project is being developed by the Gorgon Joint Venture, which consists of Chevron (50 percent and operator), ExxonMobil (25 percent) and Shell (25 percent).

The gas fields in the Greater Gorgon area hold more than 40 trillion cubic feet of natural gas and form Australia's largest known gas resource. (ANI)