PM confident of PNG gas project proceeding. "Marketing arrangements near completion"
PostCourier, July 21
MARKETING arrangements for the proposed PNG Gas project are nearing
completion, Prime Minister Sir Mekere Morauta said yesterday.
Sir Mekere, after being briefed by PNG Gas project officials, said
financial negotiations for the project were also well advanced.
After being elected as PNG's sixth prime minister last week, Sir Mekere
said in his maiden speech in parliament that economic projects such as
the gas project which are vital to PNG's economic health will be given
top priority.
''The project has come a long way from a mere concept to reach the
stage where it is today,'' Sir Mekere said in a statement.
''I am especially pleased to know that the reserves integration issue
is now settled; marketing arrangements near completion and financial
negotiations are well advanced.
''I note that detailed engineering studies will commence next month
following the signing of the sales agreement and financial arrangements
(which are expected to) be put in place about the middle of next
year,'' added.
Sir Mekere said he was pleased with the project's progress so far.
''My Government will ensure that the project is given the recognition
it requires to succeed,'' Sir Mekere said after being briefed by PNG
Gas project director Dr John Powell.
''I recognise that a project of this magnitude will be of immense value
to Papua New Guinea.
''It should have a significant bearing, once it comes on stream, on the
economy of the country and underpin the increasing importance and
growth of gas, petroleum and energy development here.''
Sir Mekere thanked Dr Powell for the briefing which included a general
overview of the project status.
He made special mention of the market negotiations which are underway,
and also the gas agreement that is expected to be concluded soon.
Sir Mekere said he agreed that PNG gas would be more competitive
against coal in the years to come in the Queensland market, as
Australia began to accept international commitments to reduce carbon
emissions.
''Gas is cleaner energy and it is the energy for the future, whereas
coal is not.
''I am confident that the Millmerran coal-fired power plant will not be
a threat to the PNG gas pipeline project.
''I trust this factor would have been taken into consideration in the
calculations for the sale of our gas to Queensland.
''Similarly, the Timor Sea gas project will not affect us.
I am informed that a lot of work is yet to be done to bring the Timor
project to the state where the PNG project is at present.
''My government accepts that the Gas pipeline project is very important
to the PNG economy, at least for the next 30 years or so.
''I, therefore, urge all parties concerned with this project, together
with the prospective customers, to maintain the high spirit of
cooperation to bring it to a successful conclusion,'' he said.
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