"The Japanese have been spooked by China and India grabbing large volumes," Bloomberg Television quoted LNG consultant Arthur Dixon as saying last week.

"They are now able to accept the reality of high oil prices and are stepping up to get any supplies coming around."

Tokyo Gas, Chubu Electric Power and Osaka Gas had agreed to buy LNG from Gorgon in 2005, when oil was at $57 a barrel, less than half of current prices.

"The prices they got for Gorgon were largely lower by current standards," Wood Mackenzie LNG head Frank Harris said.

"Every deal done today is at parity to oil."

Global LNG consumption is set to increase 10% a year through to 2015, more than five times the estimated gains in crude oil demand, Citigroup analysts led by James Neale said in an April 15 report.

Gas demand is poised to grow as government regulations require power producers to switch to cleaner-burning fuel from coal and oil.

Gorgon joint venture partners - operator Chevon (50%), ExxonMobil (25%) and Shell (25%) - are seeking environmental approval for the third train on Barrow Island, after deciding to increase the project's size by 50%.

Gorgon had already received environmental approval for two 5 million tonne per annum trains at the end of last year.

The project faces numerous environmental problems associated with its proposed siting on Barrow Island, an A-class nature reserve, and the high carbon dioxide content of its feedstock.

It has also had numerous cost blowouts and budget revisions, and by late last year the budget was widely thought to be well over $20 billion.