BG Group Plc, owner of the Coal Seam Gas fields in Australia, has signed a deal with China's state owned oil and gas company China National Offshore Oil Corp Ltd to provide liquefied natural gas (LNG) for 20 years.

The deal is supposed to be worth $A60 billion. The Federal Government announced the deal today. The Government said that it is the biggest trade deal in the history of Australia so far.

According to the terms of the deal, BG Group will supply a total of 72 million tons of LNG over 20 years from its coal seam gas plant at Curtis Island in central Queensland. BG will supply 3.6 million tons per annum of LNG over a 20 year period. GQC Pty Ltd, BG Group's wholly owned Australian subsidiary, is developing the facility at Curtis Island and the plant expected to start production by the year 2014.

Martin Ferguson, Australian Resources and Energy Minister, was in China today on the occasion of signing the deal between two companies. He said that this deal will also further demonstrate Australia's attractiveness as an internationally competitive and safe destination for global capital.