Abstract: The arrival of the first shipment of Australian LNG in May 2006 at Dapeng LNG Co. Ltd., in Guangdong heralded the commencement of China’s imports of natural gas on a considerable scale. Providing 60% of China’s total LNG imports over the past few years, Australia will remain a major LNG supplier to China in the years to come, strongly indicating its continuous positive role in improving China’s primary energy consumption structure, energy security and quality of environment. While increasingly yielding tremendous economic and social benefits, ChinaAustralia gas collaboration is also facing some issues to be dealt with properly.