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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden)

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To: Razorbak who wrote (987)	4/8/1999 8:15:00 AM
From: Tomas	of 2742

Papua New Guinea pipeline project: Delayed start but faster work timetable AGL sees 2000 PNG gas pipeline construction start MELBOURNE, April 8 (Reuters) - The Australian Gas Light Co said on Thursday the start of construction on the Papua New Guinea to Queensland gas pipeline would be delayed to 2000 due to prolonged negotiations surrounding the project. A timetable set down a year-ago had construction on the A$1.5 billion pipeline scheduled to begin this month with first gas to Queensland by October 2001. AGL group manager corporate affairs Bill McLaughlin said a delayed start to construction would be partly offset by a faster work timetable to complete the project. ''We are looking to commence that construction next year and we are still hoping to target the end of 2001 to early 2002 for first gas,'' he said. ''The biggest problem is that we don't control the timetable. It is in the hands of other people.'' AGL and Malaysian state-owned Petronas were selected in May 1998 by project proponent Chevron Corp to build, own and operate the 2,300 km stretch of the pipeline from the PNG-Australia sea border to Gladstone in Queensland. The final project go-ahead is still hinging on agreements to secure gas supplies from fields in the PNG highlands and on winning sufficient Queensland demand to satisfy financiers. Gas for the project would be sourced from the Kutubu field operated by Chevron and the Hides fields operated by Exxon Corp, but the companies have yet to conclude a deal. Chevron has said it also needed to secure foundation customer contracts of 100 to 120 petajoules per year in Queensland for the project to proceed. McLaughlin said even if financial close was delayed into the first quarter of 2000, the pipeline could still be completed without further significant delays. ''There are things we can do to circumnavigate that,'' he said. Under the construction programme, the pipeline would be divided into four or five sections, with a more rapid work timetable allowing more sections to be constructed simultaneously. biz.yahoo.com

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