Taking into account CS Energy's existing gas commitments and future gas-fired generation requirements, the PNG Gas Project would be expected to supply an average 15 petajoules (PJ) of gas per year over a 20 year period. The initial gas supply will go to CS Energy's Swanbank E power station near Brisbane.
"This sale, together with the 40-50 PJPA already committed to AGL, is
a significant boost to the PNG Gas Project," said president Esso Highlands and chairman of the PNG Gas Project Owners Group, Bill Threlfall.
"Active negotiations are continuing with other potential customers in Queensland and South East Australia. For deliveries of gas to occur in 2006, the PNG Gas Project must enter the Front End Engineering and Design (FEED) phase by the end of this year and this sale is a
significant factor in advancing us towards that decision."
Exxon said engineering and technical work on the project has been increased ahead of a decision to undertake the FEED study, this will reduce the time required to reach a development decision point and enhance our ability to deliver gas in 2006.
In order to promote the pipeline's cause to the public and politicians, the partners have quoted a recent study by ACIL Consulting, which found that during a typical operating year, the PNG Gas Project would increase Queensland's economic output by $1.22 billion and provide more than 2,200 jobs. It would also increase regional income by more than $350
million per year in the form of wages, profits and supplements.
The PNG Gas Project participants are ExxonMobil (Esso Highlands Limited as project operator), Oil Search, ChevronTexaco, MRDC (a PNG company representing landowner interests) and Japan PNG Petroleum.
