New strategic alliance could provide a catalyst to make the PNG pipeline a reality
Wednesday November 4, 8:14 pm Eastern Time
Company Press Release
NRG Energy Announces Strategic Alliance in Australia
MINNEAPOLIS--(BUSINESS WIRE)--Nov. 4, 1998--NRG Energy, Inc., (NRG) a wholly-owned subsidiary of Northern States Power Company (NYSE: NSP - news), through its NRG Asia-Pacific, Ltd. subsidiary, announced plans to form a commercial alliance with Oil Search Limited and Ergon Energy to explore business opportunities arising out of the proposed pipeline between Papua New Guinea (PNG) and Queensland, Australia.
Oil Search Limited, a PNG company, is the leading oil and gas explorer and producer in PNG, and the largest interest holder in the PNG Gas Project. Ergon Energy is a 100 percent Australian-owned and operated retailer which supplies electricity to more than 500,000 domestic and commercial customers and is the local retailer for all of Queensland outside its southeast corner.
The alliance believes the blending of their respective skills and experience in power generation, natural resource exploration and production, and electricity retailing could also provide a catalyst to make the pipeline a reality.
Together the alliance intends to investigate a number of commercial opportunities which complement the PNG Gas Project, including the purchase of PNG gas and other products, the establishment of gas-fired power generation facilities in Queensland, delivery of gas from Gladstone to Brisbane, and the formation of a company to trade and market gas in conjunction with power.
Speaking from Brisbane, Mr. Keith Hilless, managing director and CEO for NRG Asia-Pacific, Ltd., stated, ''We have no doubt our strategic alliance will have positive spin-offs for economic activity in Queensland, providing a wide array of new business opportunities, as well as additional job creation across the state. The construction of gas-fired generation in this way to meet a significant portion of the state's growing energy needs would assist the national effort to meet targets for greenhouse emissions.''
The alliance members intend to work closely with the PNG Gas Project and the Queensland government to pioneer this exciting new era in the state's development.
Oil Search Limited has extensive gas resources in its permits across PNG, totaling approximately 5 TCF, largely from its 27 percent interest in the Kutubu area and 52.5 percent interest in the Hides area. Oil Search Limited also has the largest interests in the Gobe and Moran oil projects and operates several exploration permits across PNG.
Ergon Energy is a participant in all of the newly formed competitive markets in the eastern states of Australia It is the only electricity retailer with significant numbers of customers and power sales in each of those markets.
NRG Asia-Pacific, Ltd. is responsible for the business activities of NRG in the Asia-Pacific area and is the largest IPP in Australia. NRG is one of the world's leading IPPs, specializing in the development, construction, operation, maintenance and ownership of reliable, cost-efficient and environmentally sensitive power plants. Established in 1989, NRG is involved in over 10,600 MW of projects throughout the United States, Europe, the Pacific Rim and Latin America.
Certain information included in this press release contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of NRG.
For more information regarding these risks and uncertainties, review NRG's filings with the Securities and Exchange Commission.
Contact:
Trudy Marshall
Director of Communications
612/373-5410
or
Keith Hilless
Managing Director & CEO NRG Asia-Pacific, Ltd.
011-617-3832-7333
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