$40b Australia LNG deal lapses

No major impact on market, but nation 'needs to diversify imports'

Energy giant PetroChina Co Ltd has pulled out of a $40 billion deal to buy natural gas from a project off Australia, but Chinese analysts and officials yesterday tried to play down the impact on the Chinese market or bilateral relations.

Australia's second largest oil and gas producer Woodside Petroleum Ltd informed Australia's stock exchange on Monday that an early stage agreement for the Browse Basin liquefied natural gas (LNG) project off Western Australia state had not been settled by a Dec 31 deadline and had now lapsed.