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

To: Tomas who wrote (1245)	8/18/1999 3:53:00 PM
From: Tomas	Read Replies (2) \| Respond to of 2742

Papua New Guinea Gas Project May Extend To Australia's New South Wales market! "The pipeline could be built in less than two-and-a-half years" Asia Pulse, August 18 BRISBANE, Aug 18 Asia Pulse - The proposed A$3.7 billion ($US2.40 billion) PNG Gas Project could eventually extend into the New South Wales market, project director John Powell said today. He told a Morgan Stockbroking breakfast today, the project, which will initially stretch from the PNG gas fields to Brisbane, expected final go-ahead by the third quarter next year. When asked whether the pipeline could extend beyond Brisbane into New South Wales Dr Powell said: "I can see quite a bit of logic for that happening." He said the pipeline could extend south from Brisbane, or north from Newcastle in NSW, to link up with Duke Energy's proposed pipeline project. "That is up to the AGL's and Duke Energy's of this world to decide," he said. AGL Co Ltd and Malaysia's Petronas will build, own and operate the $1.5 billion pipeline from the PNG border to Brisbane. Dr Powell said the PNG Gas Project was not concerned about the Shell/Woodside Petroleum Ltd proposal to pipe gas from the Timor Sea into Queensland. "They are probably three or four years behind us," he said. He said the PNG Gas Project operator Chevron would welcome the competition, because it should encourage greater use of gas. "We'd like the market to grow and competition enables growth," he said. He said the project expected finalisation of the front-end engineering and design work, as well as financial close within the next 12 to 14 months. Preliminary agreements were recently signed with the Queensland government-owned power utilities Energex and Ergon Energy, securing foundation volumes of 180 petajoules for the project. "By the time we get to project approval we will have spent $100 million," Dr Powell said. He said construction was expected to take about two-and-half years, with first gas delivered in late 2002. "We're looking at ways and means of bringing that date forward," he said. Dr Powell said with good weather the pipeline could be built in less than two-and-a-half years and near specification gas could be delivered to customers sooner than the target date. He said there were also other opportunities along the pipeline corridor where additional gas could be accessed, including the Gulf of Papua New Guinea. "We'll be encouraging that because it will be an open-access pipeline," Dr Powell said. "All that does is supply additional security to the customer."