'Aussie firm still in running for China LNG contract'

'Aussie firm still in running for China LNG contract'

Dow Jones, Perth

Australia's North West Shelf gas project is still in the race
to win a A$600 million a year deal to supply liquefied natural
gas (LNG) to China, a person familiar with the bidding process
told Dow Jones Newswires Wednesday.

"China is close to saying something and Australia is still in
the running," the person said.

The winner of the three million ton a year Guangdong supply
contract was originally due to be announced in mid-May.

But a decision could be imminent.

"The delays in announcing the winner has put Australia in a
more positive position," the person said. An aggressive
Australian lobbying campaign has included a visit to China last
month by Prime Minister John Howard.

Earlier this year, state-owned China National Offshore Oil
Corp. shortlisted the three bidders to supply LNG to a receiving
terminal under construction in Guangdong province in southern
China.

The North West Shelf is competing for the contract with two
other finalists, Qatar's Ras Laffan Liquefied Natural Gas Co. and
BP PLC's Tangguh project in Indonesia.

The North West Shelf is an equal joint venture comprising
Woodside, Royal Dutch/Shell Group, Chevrontexaco Corp., BHP
Billiton, BP, and Japan Australia LNG, an equal joint venture
between Japan's Mitsubishi Corp. and Mitsui & Co..

To meet a late 2005 delivery target for Guangdong, the North
West Shelf partners would need to make a final investment
decision on whether to build a fifth processing train, or plant,
towards the end of this year.

The partners are currently building a A$2.4 billion fourth
train, due for completion in 2004, that will meet rising demand
from its main Japanese market.