The North West Shelf Venture signed a MoU for the 'Management and Implementation of the Australia-China Natural Gas Technology Partnership Fund'.
The fund is a joint initiative of North West Shelf Australia LNG, and the Western Australian and Australian Governments and is aimed at providing opportunities for training, research and technology transfer between China and Australia in the natural gas and LNG industry.
The fund will provide $25 million over the next 10 to 11 years to support a range of activities, including grants, industry partnerships, and training and education opportunities. The North West Shelf Venture itself is contributing $10 million to the fund.
North West Shelf Australia LNG president John Banner said that the establishment of the fund represented an important phase in the development of China's LNG industry.
"The Fund is a tangible demonstration by all participants for the development of long-term energy partnerships across the energy sector. We look forward with great anticipation to cooperating with China to build a healthy and vibrant natural gas and LNG industry," Banner said.
On 8 August 2002, China announced the selection of Australia LNG as the sole supplier of LNG to Guangdong, China's first LNG project. This announcement was cemented on 18 October 2002, with the signing of a 25-year LNG sale and purchase agreement between the North West Shelf LNG Sellers and the Guangdong LNG project proponents.
The Chinese Government recently approved the Feasibility Study Report for the Guangdong LNG Project, which provides for the supply of 3.7 million tonnes a year of LNG and is currently anticipated to start in mid-2006.
The fund was offered in conjunction with North West Shelf Venture's successful bid for the Guangdong LNG supply contract.
The six equal participants in the North West Shelf Venture are Woodside Energy (operator); BHP Billiton Petroleum (North West Shelf); BP Developments Australia; ChevronTexaco Australia; Japan Australia LNG (MIMI); and Shell Development (Australia).
