Moody's lauds Papua New Guinea Gas
PostCourier, June 2
THE PNG to Queensland gas project will create jobs and provide a long-term source of revenue for the Government, Petroleum and Energy Minister, Sir Rabbie Namaliu said yesterday Sir Rabbie issued a statement saying respected international ratings agency Moody's, in its report on PNG, had highlighted the ''tremendous long-term benefits the PNG Gas Project will bring Papua New Guinea''.
He said the report offered the prospect of an all important ratings upgrade if the gas pipeline project to Queensland went ahead.
In the report, Moody's states: ''Despite the outlook for declining mineral and oil production from existing projects over the next few years, natural gas exports via pipeline to Queensland could more than offset any drop in revenue.
''Negotiations to construct such a pipeline are at an advanced stage, but at this time there is no final agreement. Because of the nature of natural gas contracts, this would be a steadier source of revenue than most other commodities now exported.''
In the section dealing with rating outlook, Moody's said: ''The outlook for these new ratings is stable.
''Potential downward pressure could develop if the country does not regularise its relations with external creditor organisations or fails to find alternative sources of external finance during the course of 1999.
''Possibly alleviating such pressure and moving the outlook in a positive direction would be the start of the gas pipeline to Queensland.''
In response, Sir Rabbie said: ''Moody's have rightly highlighted the benefits the project will bring to the overall economy, such as strengthening our balance of payments, and eventually reducing debt pressures.''
He said every Papua New Guinean should see the project as benefiting everyone, as well as securing the nation's economic future.
Sir Rabbie said the project would also bring substantial benefits to landowners and provincial governments, who will share in the project through the National Gas Corporation. It will also give impetus to further oil and gas exploration, he said.
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