The expired $40 billion liquefied natural gas (LNG) deal between PetroChina and Woodside Petroleum of Australia should be seen as an individual case and is unlikely to have any serious market repercussions or impact on bilateral ties.

While it is difficult to comment on what prompted the decision, it does raise some concerns considering the recent shortages of natural gas in the country.

Though China is not a major gas consumer, use of natural gas has been rising steadily at an average 17.6 percent annually in the past five years, far above the country's GDP growth. Even when the rest of the world was grappling with the financial crisis in 2008, China's natural gas consumption rose 15.8 percent year on year, compared with 2.5 percent growth worldwide.