More about the Pandora Project in PNG.
THE next six to nine months will be critical in determining the success of the PNG gas pipeline project, a senior official from the pipeline construction partnership said yesterday.
Australian Gas Light Ltd of Australia and Malaysia's national oil company, Petroliam Nasional Berhard (Petronas), (and Lundin Oil - Greywolf note) will jointly build the pipeline.
Some of the critical issues which needed to be addressed, the companies said, were the passage of PNG's gas legislation and gas sales deals with foundation customers.
Speaking exclusively to the Post-Courier yesterday, senior officials of the AGL/Petronas joint venture said they were ''as confident as ever that the project would now proceed''.
Greg Martin, AGL's group general manager for energy infrastructure, and Muri Muhammad, Petronas' vice president for gas business, pledged
their companies' commitment to the project
Mr Martin said negotiations with foundation customers were progressing well. Obviously delighted at their selection as pipeline builders, company officials returned this week for discussions with operator Chevron, its joint venture partners and with government officials. They met with the Department of Petroleum and Energy and the pipeline partners yesterday and will meet with Prime Minister Bill Skate this morning, followed by talks with other government officials.''I must say the project is looking really good at the moment,'' Mr Martin said. ''We are at a critical stage of the development of the project.
''We are as confident as ever that the project will proceed.
Hopefully, we'll reach financial close (negotiations for project finance) by the end of the first quarter of 1999,'' Mr Martin said.
Both Mr Martin and Mr Muhammad said their meetings so far with government officials and the gas partners had been positive and they were looking forward to similar meetings this morning.
Their message to Mr Skate would be: ''As the preferred developer, we are committed to getting the pipeline off the ground, confident that the project will bring benefits to both Australia and PNG.''
They will also be stressing the need to have the gas legislation in place as quickly as possible so all players understand the rules.
Mr Martin said AGL would take the lead for onshore construcation while Petronas would concentrate on the offshore portion.
The two companies are already partners in the Mumba to Sydney gas pipeline and other pipeline projects but this is each firm's first involvement in PNG.
AGL and Petronas will be jointly responsible for the construction of the pipeline and will be joint builders and operators of the pipeline. |
