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

To: Tommaso who wrote (518)	3/11/1998 8:22:00 AM
From: Tomas	Respond to of 2742

Sands' Papua New Guinea Gas Project Chevron says close to first PNG gas sale CANBERRA, March 11 (Reuters) - Chevron Corp said on Wednesday it was close to reaching its first gas supply contract with an independent power station operator for its proposed Papua New Guinea-to-Australia pipeline project. The negotiations are underway with Stanwell-Detsec to supply between 40 and 50 petajoules of gas to a 760-megawatt power station in Townsville, Queensland. ''In Townsville, we are, I think, close to completing a conditional gas sales agreement with Stanwell-Destec and I'd be looking forward to achieving that in the very near term,'' said John Powell, project director for Chevron subsidiary Chevron Asiatic Ltd. ''It's broadly 40-50 petajoules a year,'' Powell told reporters at the Australian Petroleum Production and Exploration Association Ltd (APPEA) conference. Chevron and its joint venture partners in the A$4 billion project have proposed laying roughly 2,400 km of pipeline ranging from 18 inches to 24 inches in diameter. The pipeline would link the Kutubu, Gobe and Kopi oil and gas fields in the Southern Highlands of Papua New Guinea with the industrial regions of northern and central Queensland. Chevron hopes to secure contracts for an initial flow rate of around 300 million cubic feet a day of gas through the pipeline. It also is in talks with aluminium maker Comalco Ltd (CMC.AX), which is studying building an alumina refinery near its smelting complex in Gladstone. Chevron holds a 19.4 percent stake in the pipeline and is the designated operator. Other major stakeholders are Mobil Corp (MOB - news) 16.5 percent; Orogen Minerals Ltd (OML.AX) 15.8 percent; The Broken Hill Pty Co Ltd (BHP.AX), 9.7 percent; traditional landowners group MRDC, 6.8 percent and Mitsubishi Oil Co Ltd (5004.T) 4.5 percent.