Origin Energy and partner ConocoPhillips will supply feed gas to BG Group's liquefied natural gas project, making it the first collaboration in the Australia's LNG sector.
The partners will sell gas extracted from coal deposits in the Queensland to BG's planned A$8bn (US$7.12bn) Queensland Curtis LNG project, reports Reuters.
The agreement is expected to add value for Origin, however, analysts are concerned about possible delays in its own LNG project, known as Australia Pacific LNG (APLNG).
APLNG will need to secure customers by the second quarter of 2010 to approve the first phase of the A$35bn (US$31.14bn) project by the end of 2010.
BG will produce 8.5 million tons of LNG a year from 2014.