Page last updated at 06:46 GMT, Thursday, 10 September 2009 07:46 UK

Australia agrees $60bn gas deal


US oil firm Chevron has signed $60bn (£36bn) worth of deals to supply natural gas to Japan and South Korea from its Gorgon project in Australia.

Chevron Australia said it would supply Osaka Gas with 1.375 million tonnes of natural gas a year over 25 years.

Tokyo Gas would receive 1.1 million tonnes and South Korea's GS Caltex would get 0.5 million tonnes.

Australian Prime Minister Kevin Rudd described the deals as a "shot in the arm" for the Australian economy.

Last month, PetroChina signed a deal to buy $50bn worth of liquefied natural gas (LNG) from Gorgon - the largest trade deal in Australia's history.

Separately, India's Petronet signed a $25m deal.

Controversial site

Mr Rudd said the latest deals "will deliver in the order of A$70bn worth of exports to Australia over the next 25 years".

He told parliament it had been a "great month" for Australia's LNG export industry.

"These are massive projects that will generate economic growth, income, jobs and prosperity for the nation for decades to come.''

The yet-to-be-developed Gorgon gas field on Barrow Island off western Australia is expected to generate 6,000 jobs and make Australia a leading LNG supplier in the region.

But the A$50bn ($42bn; £25.6bn) project has met opposition from environmentalists as Barrow Island is home to a number of endangered, rare and endemic species.

Chevron and its partners in the project, Royal Dutch Shell and Exxon Mobil, are expected to give the go ahead for production in the coming weeks.

Print Sponsor

PetroChina in huge Australia deal
19 Aug 09 |  Business

The BBC is not responsible for the content of external internet sites

MarketWatch Approval for Gorgon gas project expected in days - 9 hrs ago Chevron Inks Asian Gas Deals - 22 hrs ago
IndustrySearch Chevron Aust announces $70 billion in gas export deals - 30 hrs ago
Japan Times Gas giant duo to buy Chevron's Aussie LNG - 31 hrs ago
South China Morning PostChevron seals pacts to sell stakes in gas venture - 32 hrs ago
* Requires registration

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific