$50bn China deal puts energy into Gorgon plan

The deal between PetroChina and ExxonMobil will result in about 60% of the Gorgon LNG project's product being exported to China and is seen as the biggest boost yet to the project's viability.

ExxonMobil and its partners Chevron and Shell have plans to build three processing trains with capacity for 5m tonnes each, giving the facility 15m tonnes of annual output.

The project — off north-west WA — is scheduled to begin operating in the next five years.

Federal environment minister Peter Garrett is yet to approve the development, but his support is now considered a mere formality given the range of agreements already signed.

India's Petronet signed a 1.5mtpa deal this month and about $200bn of the $300bn of LNG available has already been locked in by energy-hungry customers in Asia.

Federal resources minister Martin Ferguson said construction was likely to start in February next year.

The project is expected to cost $65bn to develop.