Papua New Guinea: Gas project one step closer to fruition
PORT MORESBY: Chevron Services Australia Pty Ltd, the operator of the PNG Gas Projects has signed a memorandum of understanding (MoU) with Comalco for supplying gas for the latter's proposed alumina factory in Gladstone, Queensland, Chevron has announced.
A media release from the Chevron office in Brisbane said that the two companies had been in negotiation since the signing of a collaborative agreement in May last year.
Orogen Minerals managing director Charles Lepani, who is attending the PNG Gas conference, said from Darwin, "The signing of the MOU is a major step towards the fruition of the project. The strong support from governments of Australia, PNG and Queensland evidenced by the recent signing of the tripartite MoU has assisted in the project moving forward, including achieving this particular milestone."
Yesterday's MOU was for the initial supply of at least 27 petajoules per year and will assist in attaining foundation market volumes that will underpin the PNG-Queensland gas pipeline project.
The statement said that PNG Gas had recently signed similar agreements for supply of gas with Stanwell/Dynergy for a base load power station in Townsville and with NRG for a new power station in Gladstone. In addition, negotiations are continuing with a number of other potential industrial customers in both Gladstone and Townsville.
Director of PNG Gas, John Powell, said from Brisbane, "We have always felt Comalco was an integral part of our project and this MoU strengthens the relationship we entered into last year. The two projects will be a catalyst to regional development and industrial growth in Queensland. While this is an important milestone, we will need to finalise many other agreements and obtain a range of approvals before the project becomes a certainty."
The statement said the participants in the PNG Gas Project were BHP Petroleum (PNG) Pty Ltd, Chevron Niugini Ltd, Mitsubishi Oil Company Ltd, Mobil Exploration and Producing Australia, Oil Search Ltd, Orogen Minerals, and Petroleum Resources Kutubu Pty Ltd.
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