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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1145)	6/11/1999 6:03:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Good news! Customers start to line up for Papua New Guinea gas Australian Financial Review, June 11 By Ian Howarth, Resources Editor The push to secure base load natural gas customers for the $US3.5 billion ($5.3 billion) Papua New Guinea to Queensland gas pipeline has intensified with a series of commitments expected to be signed with customers early next month. PNG pipeline project chief executive, Dr John Powell, from Chevron Corp, said yesterday intense negotiations were underway with customers for up to 140 petajoules a year of gas, including Comalco Ltd. Comalco has been seen as a key customer for the project, but Dr Powell said yesterday the project gas marketing team, led by AGL Ltd, has been in meetings, "every day for the last three weeks with them" and that progress was being made. Comalco and Queensland Government-owned electricity distributor and retailer, Energex, have formed an alliance as power customer and supplier which is a breakthrough in Comalco's earlier reluctance to commit to buying gas from the project. Three main gas customer groups are now being targeted by the AGL marketing team. One group comprises the Comalco/Energex alliance and customers in the Gladstone region. A second group concentrates on Townsville and customers of the Ergon Energy distribution group. A new, potentially large gas buyer near Brisbane has also emerged. While Dr Powell did not disclose the identity of the potential buyer he said if the deal was completed the gas pipeline would have to be extended to Brisbane. The gas pipeline project is a major economic lifeline for Papua New Guinea as production from the Kutubu oil field declines and the troubled Ok Tedi mine nears the end of its life. Former PNG Prime Minister and the present Mines and Energy Minister, Sir Rabbie Namaliu, said yesterday the gas pipeline project could eventually generate up to 18 per cent of PNG's national revenue and account for up to 25 per cent of export revenue. But the impact would be much larger if Ok Tedi were to close early. Ok Tedi produces 10 per cent of GDP and 20 per cent of export revenues. afr.com.au