This now ties up all liquid hydrocarbons from the project - as partners Santos and Origin are already involved in retailing liquids.

Under the terms of the agreement, Elgas will buy AWE's 37.5 per cent and CalEnergy's 20% share of LPG production from the T/RL1 area over a five year period with an initial rate of 44,400 tonnes per annum.

AWE said the LPG sales agreement was another major step forward for the BassGass project, which is projected to provide gross revenues of $1.5 billion over the 15 years. First gas production is scheduled for the third quarter in 2004.

AWE said now they have raised their equity-capital requirements, signed a gas sales agreement and a LPG sales agreement, it will work very hard with all parties to bring the project to commercial reality in the shortest possible time frame.

"AWE now has to obtain project-debt financing for its 37.5% share of the project prior to being in a position to provide project sanction at the T/RL1 joint venture level. After the project sanction, the award of facilities-construction contracts can then take place," AWE said.

The company added the relevant environmental approvals, community consultations and regulatory approval processes have also commenced with the public exhibition of the environmental impact statement and is hoping for the regulatory approval to be completed by the end the third quarter this year.