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

To: Tomas who wrote (1393)	11/22/1999 1:39:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Papua New Guinea: Energy Minister Tommy Tomscoll on the pipeline project 'Mining, petroleum are backbone of economy' The National, November 22 By NIKINTS TIPTIP PORT MORESBY: The PNG-Queensland gas project is a vision becoming a reality for PNG, and the mineral and petroleum sectors have formed the bedrock of PNG's economy in this passing decade, Petroleum and Energy Minister Tommy Tomscoll told the Kumul Association in Brisbane on Saturday. ... The PNG-Queensland Gas Project will be the largest industrial development to date in PNG, costing around US$3.5 billion (K10 billion) and it will provide significant boost to the economy and positive impact on ratings. It will be a monument that will have its own history and voice, he said. However, the minister said the liquefied natural gas (LNG) plant proposed in PNG, which was to export LNG to Japan, China and other Asian markets, has been postponed due to the downturn in demand in the region. Nevertheless, the gas to Queensland is a commercial reality and a 12-month scoreboard has been agreed upon and with financial close to be reached in September 2000, dry gas is scheduled to flow into Queensland by the year 2002, he said. Mt Tomscoll said the conditional 20-year gas contracts signed with Energex and Ergon demonstrates market existence and viability. A study commissioned by PNG companies from the academics at the National Australian University show that the gas project is by far the largest development planned to occur in PNG's history. The study estimates that the gas project will increase government revenue by more than 10.5 per cent per year and provide up to 2,800 permanent jobs. Full article: wr.com.au ___________________________________________________ Gas quantities still unresolved PostCourier, November 22 GAS reserves integration and market uncertainty in Queensland are two major issues that still need to be sorted out for the PNG Gas project, says Petroleum and Energy Minister Tommy Tomscoll. Another is the financing of project infrastructure, especially in PNG, where concessional financing is likely to be required to support a level of government equity participation. Speaking at the Kumul Association breakfast in Brisbane on Saturday, Mr Tomscoll said discussions are still going on between the PNG Gas project participants and Exxon for the integration of gas from the Hides field, which "is fundamentally important, to the customer security on gas supply. He said the discussions centre around the utilisation of gas from the Chevron and Exxon acreage. Mr Tomscoll said there is substantial market uncertainty in the Queensland sector because of competition from coal fired power stations, and the impact on the market. However, he said the PNG Gas project is better than the coal projects because it is cost competitive, a cheaper fuel alternative if transmission and emission costs are included, and has substantial environmental advantages. He also stressed the importance of the project to both the PNG economy and the Queensland economy. Mr Tomscoll said investments for the project will include K1.7 billion in gas pipelines, K5.1 billion in gas processing facilities and between K2 to K9 billion in related gas industrial investment. He said the project is expected to create 2800 permanent jobs together with a host of other benefits. Mr Tomscoll said all environmental approvals for the project in Australia and PNG have been granted. Summarising the current status of the project, Mr Tomscoll said all landowner issues on the Australian side of the border have been settled, a pipeline contractor has been selected to build, own and operate the pipeline, the feasibility study into engineering covering the major technical aspects of the project from PNG to Gladstone has been completed and approvals for the front end engineering have been granted. He said financial closure for the project is expected in September next year. However, if all other outstanding issues are settled by then, project approval could be granted in September next year, with first gas reaching the Australian market in 2001. postcourier.com.pg