We are principal legal advisers to the consortium that has won the A$25 billion contract to supply liquefied natural gas (LNG) from Australia's North West Shelf to the Guangdong Terminal in southern China.

In announcing the win on 8 August 2002, the Australian Prime Minister described it as Australia's largest-ever single export deal and worth between A$20-$25 billion in export income for Australia over the 25-year supply period.

The consortium - the North West Shelf Venture - comprises six equal participants: Woodside Energy Ltd. (operator); BHP Billiton (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pt Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Pty Limited.

Bidding for the supply contract was led by North West Shelf Australia LNG Pty Ltd (ALNG), the North West Shelf Venture's marketing group for China. Minter Ellison, through its Hong Kong office, was principal legal adviser to ALNG throughout its bid to win the contract.

Our core team of lawyers advised ALNG on the tender processes in China, legal and commercial risk identification and allocation, all the project documentation, tax effective structuring and all aspects of Chinese law relevant to the project. The team included specialists in Chinese law, major projects, energy and resources, tax and revenue, risk management, shipping and equity.

The contract was a hard-won one. In November 2001, six companies - from Australia, Indonesia, Malaysia, Qatar, Russia and Yemen - were in the bidding race. At the beginning of 2002, Australia, Indonesia and Qatar were short-listed. Australia's win as the sole supplier of the gas marked another major milestone for the North West Shelf Venture and for Australia as a world-class LNG exporter.

The North West Shelf Venture and Chinese shipping companies COSCO and China Merchants also propose to establish ship-owning and ship-management companies to transport the LNG to Guangdong. Two or three LNG ships will be required to service the China trade route.

The first delivery of gas to Guangdong is scheduled for 2006.