PNG Gas Pipeline Project Signs Gas Supply Agreement - AAP News, Australasia, April 28
BRISBANE, April 28 AAP - The massive Papua New Guinea to Queensland natural gas pipeline moved one step closer to fruition today with the signing of agreements to supply gas for the project.
Orogen Minerals advised today that agreement had been reached with the joint venture participants in the Kutubu, Gobe Main, Moran and Hides oil and gas fields to supply the gas.
The participants include Exxon/Mobil, Chevron, Oil Search, Santos and Orogen as the major resource owners.
The $US3.5 billion ($A6 billion) pipeline project will be provided with gas volumes of up to 600 million standard cubic feet per day to be available for sale to the Queensland market for a period of 30 years.
PNG gas project director Dr John Powell welcomed the agreement and called on all stakeholders to work together to bring the project to fruition.
"This agreement is an important step for the project as it provides the volumes required to underpin the market and will bring significant greenhouse benefits to Queensland," he said.
Dr Powell also said the project was now looking forward to the release of the Queensland Government's Cleaner Energy Strategy so contracts could be finalised with customers.
The strategy is expected to outline which energy sources including coal, gas and coal seam methane will be used for the State's power needs.
Queensland deputy premier Jim Elder welcomed the contracts but said it was now time for the tangible support of the project by both the federal government and the PNG government.
He said the fact the federal government was yet to formulate a greenhouse policy to comply with the Kyoto Agreement on greenhouse emissions was a major concern.
Orogen chairman Lindsay MacAlister said today's agreement would be superseded by a detailed agreement at or around the time of financial close of the project.
Today's announcement follows Comalco's recent decision that, subject to final feasibility, it has selected Gladstone as the preferred site for a proposed new $1.4 billion alumina refinery.
The refinery would eventually be powered by the gas pipeline which according to Comalco chief executive Terry palmer was "absolutely critical".
"(The agreement) paves the way for gas sales agreements to be concluded with a range of customers, including Comalco, involved in power generation and general industry in Queensland," Mr MacAlister said.
Orogen currently owns about 13 per cent of the pipeline project and has the right, but not the obligation, to increase its interest in the project to up to 23 per cent.
The pipeline is planned to be built, operated and majority-owned by AGL Co Ltd and Malaysian company Petronas.
"With such a significant interest in the PNG-QLD Gas project, Orogen is a major beneficiary of the agreement that has been reached by the various field participants," he said.
Dr Powell said the next step for the project was to secure contracts with customers in a bankable form which required the input of the Cleaner Energy Strategy.
He also said clarity was needed on taxation issues for the project in Papua New Guinea and the PNG government's position on equity participation in the PNG infrastructure.
"That clarity is required for us to give some really definitive degree of certainty that the project is in good shape," Dr Powell said.
"We've got hope clarity on those issues will occur in the next few weeks."
Orogen shares finished six cents higher at $1.26 today, Oil Search climbed nine cents to $1.55 and Santos inched ahead seven cents to $3.90. br/sh
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PNG Gas Pipeline Project Signs Gas Supply Agreement _2
Brisbane, AAP News - Australasia, April 28
Orogen said the agreement for a cooperative development of the Kutubu, Gobe Moran and Hides gas fields represents a major milestone for the $3.5 billion pipeline project.
It follows Comalco Ltd's recent announcement that subject to final feasibility, it has selected Gladstone as the preferred site for a proposed new $1.4 billion alumina refinery.
"(The agreement) paves the way for gas sales agreements to be concluded with a range of customers, including Comalco, involved in power generation and general industry in Queensland," Orogen said.
Orogen currently owns about 13 per cent of the pipeline project and has the right, but not the obligation, to increase its interest in the project to up to 23 per cent.
"With such a significant interest in the PNG-QLD Gas project, Orogen is a major beneficiary of the agreement that has been reached by the various field participants," Orogen said. |
