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

To: Tomas who wrote (533)	4/5/1998 11:31:00 PM
From: Tomas	Respond to of 2742

Papua New Guinea Govt calls for gas proposals By DANIEL KORIMBAO PORT MORESBY: The Government has invited the developers of the PNG-Queensland gas project and the Hides LNG project to submit formal applications, Petroleum and Energy Minister Masket Iangalio has said. Mr Iangalio told a news conference here yesterday that considering the significance of the projects, the Government last week decided to ask Chevron and British Petroleum to submit their applications. Chevron is leading the consortium to develop the PNG-Queensland dry gas project, while BP is developing the Hides liquefied natural gas project. The minister, who expected to receive their proposals in two weeks, said the government's move should not be seen as a final approval for the projects. "The projects would also bring about significant economic development for PNG, be a major incentive for increased exploration, and would greatly enhance the prospects of additional downstream processing of gas in the country,'' Mr Iangalio said. He said the NEC had considered on Feb 18 the report of the gas utilisation strategy task force on the use of PNG's gas resources and decided to support both projects in principle. But the decision was misunderstood by certain quarters, he added. "I must be very clear, and must reiterate that the government has given its strong support in principle for both these projects, and has now decided to invite both project joint ventures to submit formal applications to develop their respective projects,'' he said. ''This decision does not mean that final approvals will be given, because NEC has decided that final approval will only be given after relevant gas and oil legislation is enacted by Parliament.'' Mr Iangalio said it was the government's belief that there was enough gas for both projects to last for more than 30 years. The viability of both projects had to be established. The stage not yet been set yet, but the government was working closely with the developers for that, he said. For the PNG-Queensland project, it was necessary for special arrangements to be put in place with the Australian and Queensland governments, the minister said. Legislations being worked on for enactment include the downstream oil and gas activities legislation, pipelines legislation, landowners legislation and minor amendment to the Petroleum Act. Mr Iangalio expected the legislation to be finalised in two months and presented to Parliament in its July sitting after gauging views from the industry and other interested parties. The Chevron-led consortium was on target with the laying of pipeline from Kutubu to Gladstone progressing well, he said. The minister said it was important that PNG captured the Australian market for dry gas, and this project offered the best chance. ''Unlike oil, gas is a market-driven commodity and it is important that we move quickly to capture the market, because if we lose this opportunity it would take another 20 to 30 years to export the commodity,'' he said. Only gas will be piped to Queensland after the removal of liquefied petroleum gas (LPG) and condensates (light oil), which would be used for downstream processing onshore for fuel for power generation, petrochemical for industries and fertilizers for agriculture and plastic manufacturing. Mr Iangalio said export of these products would stabilise and boost the kina and improve PNG's foreign exchange reserve position. wr.com.au