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

To: Tomas who wrote (354)	11/6/1997 5:15:00 PM
From: Tomas	Respond to of 2742

The Pandora Project and the pipeline to Australia The National, a Papua New Guinean daily, this week published 3 interesting articles. The pipeline project is very important to PNG, and media covering is very good. Pipeline approval 'soon' BRISBANE: Approvals for the billion dollar Chevron gas pipeline from Papua New Guinea to Gladstone were expected to be in place next year, Australian Energy Minister Warwick Parer said yesterday. Chevron plans to build the 2,500km natural gas pipeline from the Highlands under the Torres Strait. The line would run down Queensland's east coast to Townsville and eventually to Gladstone. "Discussions with the PNG government have been very encouraging," Senator Parer said. He said the development would bring significant economic benefits to both countries and create many permanent jobs. Senator Parer said Chevron was also considering developing the Pandora gas field in PNG waters under the Coral Sea. Gas would be used for the proposed power station to be built at Townsville and the possible Comalco alumina refinery at Gladstone. "The Australian and Queensland governments are keen for this project to proceed. Approvals are well advanced and are expected to be completed in 1988," Senator Parer said in a statement. - AAP Source: wr.com.au _________________________________________________________________ Pipeline gathers pace Chevron likely to name builder by June '98 BRISBANE: The consortium to build, own and operate the A$2 billion (K2.08 billion) Papua New Guinea to Australia gas pipeline is expected to be known by June 1998, project developer Chevron Asiatic Ltd said yesterday. The PNG Gas Project director, John Powell, told a conference in Adelaide that negotiations would begin in earnest this month to select the final construction team. Negotiations with the preferred construction bidders, the AGL/Petronas consortium and Nova/Williams consortium, were expected to continue until the first quarter of 1998. The project was also hopeful of addressing government issues by the end of the financial year. "We are looking to have executed in the near term a memorandum of understanding between the PNG, Queensland and Federal Governments," Mr Powell said. "This is critical as gas is a new industry for PNG and the Queensland pipeline is PNG's first gas project of any substance." The 2,600km pipeline will bring natural gas from the PNG Highlands to Townsville and potentially Gladstone on the Queensland coast. The Australian government licence approval for the project is expected by October 1998 with the construction period taking about two and a half years. "The draft environmental impact study will be released for comment in late February," Mr Powell said. Source: wr.com.au _________________________________________________________________ PNG gas to fire Aussie plant By CLETUS NGAFFKIN PORT MORESBY: Papua New Guinea gas will power a new 750 megawatt power station to be built in Townsville, Northern Queensland, through the proposed PNG/Queensland gas pipeline project. The 2500 kilometre pipeline from the Kutubu area to Kopi and then underwater across the Gulf of Papua to Queensland, is one of the longest in the world. This project is expected to cost K7 billion of which about 70 per cent would be spent in PNG. It will create up to 475 permanent jobs plus 3000 construction jobs. Chevron Asiatic Limited, operator of the PNG gas project, has selected the preferred developer who will build, own and operate the power station. The successful consortia comprising of Stanwell Corporation Limited and Destec and Energy Inc was selected from four contenders, shortlisted from an original 12 bidders who expressed an interest in the power station. The bidding was intense and all four prepared and submitted full commercial submissions. The selection was based on commercial and risk related merits. Stanwell Corporation, a Queensland Government entity, is one of the generating companies created out of the former Austa Electric. It has extensive interests in power generation and distribution in the Queensland electricity market. Destec Energy, a subsidiary of NGC in the United States, brings a wealth of international gas fired power generation experience to the joint venture. Chevron holds a minority interest in NGC. Charles Lepani, chief executive of Orogen Minerals Limited which owns 20 per cent in the project, has expressed total support and commitment towards the gas pipeline. "We see real potential for PNG to follow the oil project successes at Kutubu, Gobe and Moran with gas projects based on the PNG gas pipeline now and then a liquefied natural gas (LNG) plant as soon as the market is secured," said Mr Lepani. "If we can accomplish this string of successes, PNG's future will be more secure with the gas projects providing revenue and jobs and promoting industrial development in PNG for decades after the natural decline of oil production. "That is why it's important to make our position very clear ... we support PNG gas to Queensland now, and liquefied natural gas (LNG) as soon as the market allows." During its estimated 30 years lifetime, the gas project will generate enormous tax revenue for the State totalling about K7.5 billion which is an annual average of about K225 million. The government's annual tax income from the various gas developments would increase by about K450 million per year. Other benefits include the construction of a liquefied petroleum gas plant near Kopi, additional oil production from the Kutubu fields, royalties for landowners and balance of payment savings. Meanwhile, the Conditional Sales Agreements are expected to be finalised by Christmas and pending final approval for the PNG gas project to proceed, first gas is expected to flow from the Southern Highlands in mid 2001. PNG gas project director, Dr John Powell, said: "We welcome the successful parties of Stanwell and Destec. Their combined blend of local knowledge and international expertise will and considerable value to the deregulated electricity market in northern Queensland". "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 for final project approval towards the end of 1998". Source: wr.com.au