AGL to study PNG gas resources


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July 2, 2007 - 3:00PM
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AGL Energy Ltd will conduct a study that could see earlier commercialisation of its liquefied natural gas (LNG) resources in Papua New Guinea.
AGL last year pulled out of the $8 billion Papua New Guinea-to-Australia gas pipeline project, saying it would not proceed with construction of the Australian section of the pipeline without confirmed customers.
The pipeline project, whose other participants included Oil Search Ltd and ExxonMobil, then collapsed in February.
The ExxonMobil-led LNG project studies are estimated to cost approximately $US60 million ($A70.47 million) for this phase of the project, with under the agreement AGL will fund 3.3 per cent of the cost.
AGL and the participants in the Kutubu, Agogo, Moran and Gobe field joint ventures have joined in a cost-sharing agreement with the joint venture participants in the Hides, Angore and Juha gas fields to study an LNG project in PNG.
Study participants should be in a position to decide on entry into the front-end engineering and design phase of an LNG project before the end of the agreements term.
© 2007 AAP