BEIJING (Commodity Online) : Australia on Wednesday announced $60 billion gas deal with China to export LNG from its state of Queensland.

According to country’s Resources and Energy Ministry, the 20 year contract deal between British company BG Group and the China National Offshore Oil Corporation is the biggest in Australian history and will have huge benefits.

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BG Group will supply 72 million tones of LNG over 20 years from its Coal seam gas plant in central Queensland. Gas will be piped from the Surat Basin to Curtis Island near Gladstone.

"The Coal seam methane industry potentially means about $50 billion in investment over time, tens of billions in exports and tens of thousands of jobs," the ministry said.

"From energy and a resource point of view, Australia is very important to China's future economic development."

the deal, which is Australia's second major gas deal with China in six months, shows China and Australia's economic relationship has not been harmed by this week's controversial trial of Australian Rio Tinto executive Stern Hu in Shanghai.

The deal is due to start in 2014, but is still subject to foreign investment review board and environmental approvals.

If it is approved, BG Gas will invest about $10 billion to develop the project.

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