In March, Australia signed its biggest single LNG contract after securing a A$60 billion deal for 72 million tonnes over 20 years with China.

Under the deal, BG Group will supply 3.6 million tonnes of LNG per annum to the China National Offshore Oil Corporation for 20 years from its proposed Queensland Curtis LNG project at Gladstone. In volume terms, the deal represents Australia’s biggest single company-to-company LNG contract in its history.

At a signing in Beijing, Australian Minister for Resources and Energy, Martin Ferguson, said the deal would make Australia the world leader in the coal seam gas-based LNG industry and would bring Australia one step closer to opening up a new LNG province in Queensland.

"Queensland is already a resources powerhouse and an LNG industry will diversify its economy and generate further jobs and export wealth for Queenslanders and the nation as a whole," he said.

BG will process the LNG at the Queensland Curtis LNG Project on Curtis Island at Gladstone and will be operated by BG's Australian subsidiary, QGC. Current plans are for two LNG production trains of up to four million tonnes a year, and possibly a third.

A final investment decision on the project is expected this year and the deal remains subject to FIRB and regulatory approval.

Mr Ferguson said the project involved an estimated investment of more than A$10 billion and would generate 5,000 jobs during construction and 1,000 long-term operations jobs. BG estimates its LNG business will generate A$32 billion in value-added activity for Queensland by 2021.

CNOOC was one of the first Chinese buyers of Australian LNG for the China market and already holds an equity stake in gas resources of the North West Shelf Gas Project.