A report in The Weekend Australian Financial Review said Woodside is expecting to sign a multibillion LNG contract, presumably for gas from the Pluto project, on the sidelines of the APEC meeting in Sydney next month.

This will be Woodside’s second big Chinese LNG deal. But unlike the 2002 agreement with CNOOC – which was capped at an oil price equivalent of $US25 per barrel – this latest deal is likely to be on terms in line with international gas prices.

Woodside chief executive Don Voelte told analysts last week a “key terms” agreement could be signed soon.

Australia’s stability and Woodside’s reliability as a supplier are believed to be key factors in the impending contract.

“I think Woodside as a supplier of LNG is seen as a reliable, secure, knowledgeable operator, and we’re getting an awful lot of demand for our products,” Voelte told the analysts.

Voelte has hinted that several major customers are interested in gas from Pluto and from forthcoming Woodside LNG projects, including Browse and Greater Sunrise.