China Gas subsidiary SinoGas Group will purchase LNG from Australia’s Icon Energy for a 20-year period, following a new deal.

Icon will supply 40 million tonnes of LNG under the MoU estimated to be worth up to A$32bn ($29.6bn).

Icon managing director Ray James said that it will supply LNG from its current tenements in South Australia and Queensland states, by arrangements with existing joint venture partners and by securing more tenements.

The firm will begin supply of LNG to China in 2014.