Sour China-Australia ties hit talks over LNG deal, says Woodside (updated)

China HK Power Smart Energy

12/11/2020 04:20

(Updates with Woodside shelves China LNG talks over diplomatic
ties)
    By Sonali Paul and Kirsty Needham
    MELBOURNE/SYDNEY, Nov 12 (Reuters) - Australia's Woodside
Petroleum shelved talks to sell stakes in a gas field and
liquefied natural gas (LNG) project to Chinese firms because of
the diplomatic row between Australia and China, the company's
chief executive said on Thursday.
    Chief Executive Peter Coleman said the talks were stopped a
few months ago but he hoped to revive them when the diplomatic
spat subsides.
    Diplomatic relations with China, Australia's biggest trading
partner, have soured after Canberra called for an international
inquiry into the source of the coronavirus.  urn:newsml:reuters.com:*:nL4N2G40NK
    "They advised us a couple of months ago that they were just
not able to proceed at this point due to the relations between
China and Australia," Coleman told Reuters in an interview.
    Woodside had been in talks with China's national oil firms,
including PetroChina Co  601857.SS , and second-tier firms to
sell a modest stake in the linked Scarborough gas field and
Pluto LNG Train 2 project, which would have included gas sales.
    Coleman said the frayed ties have not affected Woodside's
existing partnerships with Chinese companies in its major
projects. Australia is by far the biggest LNG supplier to China,
making up about 40% of China's imports in September.
    Australian agriculture officials last week warned 400
exporters there had been recent customs delays in China and
commercial losses, including live lobsters that died waiting for
customs clearance in Shanghai.    
    Chinese officials have denied any coordinated action is
being taken against Australian products.
    Australia on Thursday said China had stopped the import of
all timber from the state of Victoria after customs officials
said they had discovered pests.
    Australia's Agriculture Minister David Littleproud said the
General Administration of Customs in China had informed the
agriculture department that "all export of logs from the state
of Victoria are suspended as of 11 November".
    The suspension notice was posted on the website of China's
General Administration of Customs on Wednesday. It also said
that Beijing had urged local customs in the southern region to
further strengthen inspections on all Australian timber.
    Local customs must return or destroy timber shipments found
with quarantine pests and not dealt with effectively, it said. 
    The ban comes a week after China halted timber imports from
northeast Queensland state, and Chinese importers told media
they had been called to a meeting and informally told by
officials that Australian products would face increased customs
inspections after Nov. 6.  urn:newsml:reuters.com:*:nL1N2HS087
    Australia's timber industry union, the CFMEU manufacturing,
said tens of thousands of jobs were on the line because
Australia exports around $600 million of roundwood (logs) to
China each year, about 60% of all log exports.

 (Additional reporting by Hallie Gu in BEIJING; Editing by
Michael Perry)
 ((Kirsty.Needham@thomsonreuters.com;))