$25bln In Long Term

Australia's recent $25 billion gas sale to China.

The gas deal between China and the North West Shelf partners was greeted as a bonanza for Australia's resources industry and a coup for the state and federal governments working against foreign bidders.

China won the deal with the price 30% lower than the similar contracts with Japanese customers.

This deal can influence relations with Taiwan, Japan and Korea in negative way.

It’s not clear yet whether China's shipping rights on the natural gas leaving the North West Shelf "provide China with an added advantage in the spot market for LNG and what likely downward pressure that advantage will put on LNG prices".

Some people believe that the development of further North West Shelf gas reserves and the China contract are crucial for decisions involving billions of dollars for a fifth LNG train on the Burrup Peninsula and the location of the liquefying gas plant, either near Darwin or on a floating platform.

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