Media Releases
PNG Gas for Gladstone strengthened by AGL commitment
6th July, 2005
The Gladstone Economic & Industry Development Board believes yesterday’s decision by Australian Gas Light to purchase a major supply of its gas from the proposed PNG gas pipeline will bring the PNG Gas Project closer to reality with positive benefits for Gladstone.
This decision comes on the back of last week’s visit by PNG Government leaders and the project proponents to Gladstone to shore up support for the project.
AGL has secured a 10% equity stake in the project. In a deal worth $4.5 billion, AGL plans to buy up to 95 petajoules of gas annually or about 1500 petajoules over a two decade period.
The PNG Gas Project participants currently ExxonMobil, Oil Search, Japan’s Nippon Oil Exploration Limited and PNG’s Mineral Resource Development Corporation have maintained that the project needed commitments of at least 200 petajoules a year to make the pipeline economically viable. The entry of AGL along with Alcan Gove last week now pushes the contract level to 248.5 petajoules of gas per year.
Chairman of the GEIDB Mr Leo Zussino, believes that the proposed $5 billion dollar gas pipeline will stimulate major industrial infrastructure development throughout Queensland and be a positive step to attracting future industry development in Gladstone.
Mr Zussino said he was pleased to meet with the PNG delegation to Gladstone last week.
“The PNG Gas Project has the full support of the GEIDB and the Board will provide project facilitation for this significant infrastructure project,” he said.
“Yesterday’s news is a major step forward for the project and boosts confidence in a positive outcome for a formal decision on the project expected next year.”
ExxonMobil commented last week in Gladstone they were satisfied with the progress of the FEED – Front End Engineering and Design study currently underway.
Now with Australia’s leading energy provider, AGL joining local giant Comalco in committing to the project for their gas supply, the signs are looking very good for the future development of the pipeline and increased gas supply to Gladstone.
Further information about the PNG Gas Project can be found at www.mobil.com.au
