Up till now, most of the marketing effort had been concentrated in the Queensland but many in the market considered this insufficient to encourage investment in the project. However this deal should give the $6 billion PNG Project the necessary confidence for an early go-ahead, according to industry watchers.

With development of Timor Sea gas still mired in controversy, the PNG Project is seen by many commentators as the only volume supplier of gas to the southern markets. Independent research has forecast a growing gap between supply and demand for gas in the southern states by 2006.