2 NEW CUSTOMERS FOR PNG�S GAS PROJECT: "First deliveries expected in 2009

Sam Vulum
First gas sales from the US$3 billion Pa-pua New Guinea to Queensland gas pipeline project are expected in 2009.

The forecast delivery, however, depends on the completion of the Front End Engineering Design (FEED) and the securing of gas sales agreements.

The project is a world scale resource development and one of PNG and Australia�s largest infrastructure projects. It has the potential to deliver major benefits to the economy and communities in both countries.

The project involves tapping vast quantities of natural gas in PNG�s Southern Highlands province and transporting the gas 3000 kilometres to customers in Australia. The pipeline would be the longest in the Southern Hemisphere.

Under the project, the PNG plant will produce gas, crude oil and condensate for sale.

The project participants, led by operator ExxonMobil, have made a deal with two new customers�Alcan and AGL.

A conditional agreement reached with Alcan involves the supply of gas to Alcan�s alumina refinery at Gove, Northern Territory, in Australia.

The agreement covers the sale of 43.5 petajoules of gas per annum for a period of 20 years from the project startup.

The AGL deal covers the sale of around 1500 petajoules of gas over 20 years from the project startup.

AGL is expected to use the gas as part of its portfolio of supplies to service its retail and industrial customers.

The project has between 3300 petajoules and 4750 petajoules under conditional agreements.

All is looking well so far for the project with the backing of major shareholders, O"