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

To: Tomas who wrote (1009)	4/14/1999 11:49:00 PM
From: Tomas	Respond to of 2742

Excitement as Papua New Guinea gas project becomes a reality PostCourier, Thursday April 15 BRISBANE: The $US2.5 billion (K5.9 billion) PNG Gas project could still go ahead without aluminium company Comalco as its first major customer, the pipeline's project director said yesterday. Oil Search announced yesterday it had signed an agreement with United States-based energy giant Exxon Corp to enable adequate reserves for the pipeline project, if there was agreement on appropriate commercial terms for gas contracts. The pipeline's project director Dr John Powell said the agreement removed a major obstacle to the pipeline going ahead. ''Our view is that the customer base is sufficient enough, if Comalco decided to go somewhere else, we can do it without them,'' Dr Powell said yesterday. Comalco is considering a site in Gladstone, on the central Queensland coast, but is also considering Malaysia for a proposed $A1.4 billion alumina refinery. The company has said that guaranteeing reserves and fixing the gas price were two of the major issues which needed to be resolved before it could consider a full feasibility study into the Gladstone site. Queensland Premier Peter Beattie said the completion of an agreement which secured gas reserves from Oil Search, Exxon and Chevron resolved the issue of critical gas supply and that the pipeline could be up and running by the beginning of 2002. ''This essentially is the clearing of one of the last major stumbling blocks in relation to the PNG gas project and the road is now clear for all potential customers to sit down and finalise their gas supply requirements,'' Mr Beattie said. Capital investment was expected to reach $A8.1 billion by 2010. ''The PNG gas project has the potential to make a quantum boost to the industrial development of Queensland by providing abundant and competitively priced energy, especially to north Queensland,'' Mr Beattie said. Federal Minister for Industry, Science and Resources, Senator Nick Minchin also welcomed news of the gas deal, saying the pipeline would support a number of major development projects in north and central Queensland. During construction, employment in the pipeline and associated industries was expected to generate around 5000 jobs, Senator Minchin said. Total regional employment from the pipeline and associated industries would create an estimated 2500 jobs. In January this year, the Federal Government announced it would offer a $100 million incentive package to Comalco to lure the project to Gladstone. postcourier.com.pg