China and Malaysia sign gas deal

Malaysia is to sell liquefied natural gas (LNG) to China for the first time in a deal reportedly worth $25bn.
Malaysian state oil company Petronas has agreed a 25-year deal to supply gas to Chinese firm Shanghai LNG.
China is frantically pursuing energy deals around the world to support its rapid economic growth, at a time when its current gas reserves are dwindling.
In recent years, it has agreed deals to import gas from Australia, Indonesia, Iran, Russia and Turkmenistan.
Alternatives to coal
China has also been buying oil from as far afield as Nigeria and Venezuela as it look to alternative sources of energy to coal, which it still uses to generate most of its electricity.
The latest deal was announced on the sidelines of a trade meeting in China by Chinese Prime Minister Wen Jiabao and Malaysian counterpart Abdullah Ahmad Badawi.
China's gas situation is really pretty urgent
Albert Kwong, PetroAsian Energy.
The gas will be transported from Petronas' gas facility in Bintulu, in the Malaysian state of Sarawak, to Shengsi in Zhejiang Province.
Shanghai LNG is a joint venture between state-owned energy firm CNOOC and Chinese counterpart Shenergy Group.
The value of the deal to Malaysia has not been disclosed but local media suggested it could be worth up to $25bn.
Petronas, which has had a monopoly over Malaysian energy exploration and development since 1974, said the deal was a "major breakthrough" into the Chinese market.
"This is Petronas' first LNG deal with China and the deal will further enhance the economic ties between the two countries," it said.
Gas guzzler
According to industry estimates, China currently uses about 43 billion cubic metres of natural gas a year.
This figure is set to rise to 113 billion by 2015 as China's rapid industrialisation and growing personal wealth eats up more energy.
China's own limited gas reserves are expected to dry up by 2020.
"This is just one of the LNG deals that they need to do," said Albert Kwong, from energy consultancy PetroAsian Energy.
"China's gas situation is really pretty urgent."