PetroChina seals record Australian gas deal

PetroChina signed an initial agreement on Thursday to buy up to US$37.3 billion of liquefied natural gas (LNG) from Australian firm Woodside Petroleum, the Financial Times reported. The deal, to be spread over 15 years, with the Chinese buying 2-3 million metric tons of gas per year, is set to be Australia's biggest ever export contract. Through the agreement PetroChina, which is the overseas-listed subsidiary of China National Petroleum Corp, will become a foundation customer for Woodside's proposed Browse project in Western Australia. The contract, along with an deal PetroChina signed earlier this week with Shell to buy gas from its Gorgon project off the Western Australian coast, marks a return to the global LNG market by China following several years of inactivity.