PNG: Agreements with gas customers "very close" to being finalised
Accord with gas customers 'is near'
The National, July 5
By KEVIN PAMBA
PORT MORESBY: Agreements with potential customers of the PNG gas project were "very close" to being finalised, Petroleum and Energy Minister, Sir Rabbie Namaliu, said yesterday.
Sir Rabbie was speaking on his return from discussions with the project partners and the Queensland government in Brisbane.
"Not only am I very confident the necessary customer agreements will be concluded, I believe the actual market the project will service will be even greater than we had originally expected," Sir Rabbie said.
He said long-term agreements with customers in Queensland - the electricity authorities and industrial users - would give the green light for the K8 billion plus project to commence.
"The market survey has confirmed the potential demand is significantly greater than expectations and that will lead to even greater revenue flows to the Government and greater benefits for landowners and provincial governments, over the expected lifetime of the project and beyond," Sir Rabbie said.
He said the discussions he and Petroleum and Energy Secretary Joseph Gabut held in Brisbane recently were easily the most productive and positive ever.
"We also met with the deputy premier of Queensland, Mr Jim Elder, who confirmed his Government's commitment to the Project," Sir Rabbie said.
"The same commitment has been given by the Australian government.
"The cooperation between the three governments - PNG, Australia and Queensland - has been a most positive contributor to the project and the stage that has now been reached."
Sir Rabbie said Oil Search, as the lead partner in the marketing survey with Australian Gas Light (AGL), which has been engaged to secure long-term customers, deserved every credit for the progress.
Oil Search and Orogen are meeting most of the costs at present and should be commended for their efforts.
Sir Rabbie also said that discussions for financing PNG's equity in the project are well advanced.
He said the discussions with the Asian Development Bank (ADB) and with Japanese lenders including the Overseas Economic Cooperation Fund (OECF) for commercial and concessional financing had been positive.
He said that once the customer agreements were in place, work on the project would proceed very rapidly.
"This project will do more than any other to secure our economic future," said Sir Rabbie.
"It will become the largest single revenue source for the National Government, it will give export income a much-needed long term boost and it will provide real jobs and training as well as business opportunities for our people."
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