PM hails $25b China gas supply deal. 28/06/2006. ABC News Online


The Prime Minister John Howard will join China's Premier Wen Jiabao at a ceremony in southern China today to welcome the start of a multi-billion dollar liquefied natural gas (LNG) supply deal with Australia.
The long-term supply contract to China is worth $25 billion and is Australia's largest single export deal.
The first commercial shipment has now arrived off the coast of the southern city of Shenzhen.
Mr Howard says Australia has the opportunity to benefit from China's industrial expansion.
"It really is part of the opportunity Australia has to underpin China's enormous industrial expansion," Mr Howard said.
Australian exports to China have quadrupled since 1996, and China is now Australia's second largest trading partner.
The Prime Minister will hold talks with the Premier later today and address a conference on the proposed Australia-China free trade agreement (FTA).
Mr Howard says the FTA negotiations begun last year are going well.
"What we should remember is that whether we sign a free trade agreement with China or not, we have one super duper economic relationship with this country," he said.
Mr Howard's visit also comes amid concern that China's neighbour North Korea might be preparing for a missile launch while attempts to end its efforts to develop nuclear weapons remain stalled.
It will be on the agenda during the bilateral talks, Mr Howard says.
"We'll talk about obviously the economic relationship but I always take the opportunity when I meet the Chinese leadership to talk about issues such as North Korea, such as Iran and generally relations in our region," Mr Howard said.
Energy needs
Dr Jiang Wenran from Canada's University of Alberta says China still needs more energy and is looking far and wide.
"China was doing fine in the first 25 years in terms of relying on its own energy supply to develop its own economy," Dr Jiang said.
"As we go ahead though, China's target is to quadruple its economy again in the next 15 years by the year 2020 and the projection is that China will need a substantial amount of external energy sources."
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