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

To: Tomas who wrote (345)	10/30/1997 6:11:00 AM
From: Tomas	Respond to of 2742

IPC's Pandora project is making progress: Chevron takes PNG-Australia pipeline closer PERTH, Oct 30 (Reuters) - A Chevron Corp-led consortium is a step closer to approving development of a proposed A$2 billion gas pipeline from Papua New Guinea to Queensland, the project's director said on Thursday. ''It's one step in the right direction,'' John Powell told Reuters of the consortium's selection of a preferred bidder for a power station in the Queensland port city of Townsville. But he cautioned that the commercial viability of the pipeline had not yet been established and that at least one more ''big-ticket'' customer was needed before a development decision was made. ''This is a much needed precursor towards the commercialisation of PNG gas and is one of the many steps required before the project reaches suitable economic targets before final project approval towards the end of 1998,'' Powell said. Chevron said it selected Stanwell Corp Ltd and Destec Energy Inc from 12 bidders with which it will negotiate for supplies of gas to a proposed 750 megawatt power station in Townsville. The power station would require between 40 and 45 petajoules a year at maximum capacity, less than one-fourth the 220 petajoules or so the pipleline is being designed to supply, Powell said. Stanwell and Destec identified a need for the power station in Townsville based on future projected energy needs, he said. Supply negotiations with aluminium group Comalco Ltd (CMC.AX) which has expressed interest in building an alumina refinery in Gladstone, Queensland, and several smaller users in the state were underway, Powell said. The alumina refinery would require similar levels of gas as the power station, he said. Destec is a subsidiary of NGC Corp (NGL), which is 28 percent owned by Chevron. Stanwell is owned by the Queensland state government. The proposed pipeline would move natural gas from the Kutubu field in the Southern Highlands of Papua New Guinea across Torres Strait and down Cape York Peninsula to Townsville and on to the industrial city of Gladstone. Apart from Chevron, the main pipeline consortium includes PNG's Orogen Minerals Ltd (OML.AX), Oil Search Ltd (OSH.AX), The Broken Hill Pty Co Ltd (BHP.AX) and Mistubishi Oil Co Ltd (5004.T). Also involved are Mobil Corp (MOB) unit Mobil Exploration & Producing Australia Pty Ltd and Petroleum Resources Kutubu Pty Ltd.