Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tomas who wrote (774)	10/14/1998 10:51:00 PM
From: Tomas	Respond to of 2742

PNG: Gas project a step further - Pipeline development pact signed in Brisbane The National, Thursday October 15 PORT MORESBY: The PNG- Australia gas pipeline project moved a step further with the signing of the pipeline development agreement in Brisbane yesterday. The signing of the agreement between the project participants and AGL/Petronas joint venture was announced by Chevron Services Australia. The agreement is "for the construction, operation and ownership of the Australian sector of the PNG to Queensland gas pipeline", project director Dr John Powell said. Dr Powell also said the signing of commercial sales agreements with foundation customers could happen within four to eight weeks. Chevron Niugini's director of gas commercialisation, Dr Moseley Moramoro, welcomed the agreement. "While this major milestone is happening on the Australian side of the border, attaining the appropriate PNG legislation and the PNG gas agreement remain unattainable milestones in PNG at present," he said. "This is because these are outside the control of the PNG gas project participants but in the control of the Government." Yesterday's agreement finalises all relevant commercial terms associated with the development of the Australian pipeline and consummates the relationship first mooted in May with the selection of AGL/Petronas as the preferred developer. "The execution of this substantive agreement represents a major milestone for the PNG gas project," Dr Powell said at the signing ceremony. "As a result of this agreement and with the approval of the Queensland Regulator and ACCC, all potential customers will be provided with tariff structure details and pipeline access principles which will enable completion of bankable Heads of Agreement for future gas supply." The A$3.5 billion (K4.9 billion) gas project aims to bring natural gas from the Southern Highlands to industrial markets in Townsville and Gladstone, thereby providing the catalyst for significant regional development and job creation opportunities. Dr Powell said "the accord lays a sound framework for the ultimate approval of the project. However, a number of other commercial hurdles need to be cleared before the project becomes reality. "With the realisation of access principles there is no reason for customers to delay their commitment to the project," he said. "I would like to thank the Governments for their ongoing support for the project". Dr Powell said memorandums of understanding (MOU) had been signed with a number of potential pipeline customers, including Comalco Ltd which has earmarked Gladstone as a possible site for a gas-fired alumina refinery. "Given the release of this material we expect a very early turn around of those documents from the current status to what we would see as bankable paper and I would anticipate that should happen in the next four to eight weeks," Dr Powell told AAP. MOUs have also been signed with Stanwell/Dynegy for a base load power station in Townsville and with power producer NRG ASIA Pacific for a new power station in Gladstone and also with AGL-TransAlta for a power station. He said discussions were also underway with Queensland Alumina Ltd and QNI Ltd as potential customers. "There are a number of other smaller customers who I think when they see the tariff structure will be much more prone to sign on into gas sales agreements." Comalco is regarded as a strategically important foundation customer, with its A$1.4 billion refinery expected to take up at least 27 petajoules of the 100 to 120 petajoule demand required to underpin the pipeline project. A Comalco spokesman said he welcomed the signing of yesterday's agreement as a step forward but said the company had not yet decided on whether to build the refinery in Queensland or at a site in Malaysia. "We're still considering studies on the two sites," he said. Dr Powell said the other two outstanding issues for the project to go ahead were obtaining access to gas in the adjoining Exxon acreage and for legislation to go before the PNG parliament. He said the negotiations with Exxon should be finalised within the next four to eight weeks. The participants in the gas project are: Chevron Niugini Ltd, Mitsubishi Oil Company Ltd, Mobil Exploration and Producing Australia Pty Ltd, Oil Search Ltd, Orogen Minerals Ltd and Petroleum Resources Kutubu Pty Ltd. wr.com.au