Australian Prime Minister John Howard shakes hands with China's Premier Wen Jiabao during their meeting in Canberra, earlier this year. [AFP]

Howard arrived in south China's port city of Shenzhen yesterday afternoon to mark the opening of a terminal that will be used to receive liquefied natural gas from Australia.

Howard was scheduled to inaugurate the 29 billion yuan (US$3.6 billion) facility today.

The shipments from Down Under are part of an A$25 billion (US$18.3 billion), 25-year contract that's Australia's single biggest resource deal.

China is Australia's second-largest export market, after Japan. Sales of Australian coal, farm products, iron ore and other goods drove a 46 percent increase in exports to China last year, raising the figure to A$16 billion.

In Beijing, Chinese Foreign Ministry spokeswoman Jiang Yu told a regular news conference that the liquefied natural gas project will help China develop its LNG industry and make greater use of this clean energy.

The project is China's first major LNG import deal.

Jiang said Howard will also attend a symposium on a China-Australia free trade zone this afternoon.

She said Sino-Australian relations have been developing well. Trade volume between the two countries reached US$27.3 billion in 2005, a year-on-year increase of 33 percent.

Bilateral cooperation in culture, education, science and technology, tourism and consulate affairs has also increased, Jiang said.

China considers Australia a good friend and is willing to strengthen dialogue and deepen cooperation between the two countries, Jiang said.