15 Jul 2005

PNG pipeline wins full confidence of Australian energy company

10:15 am on 15 July 2005

A leading energy company in Australia has invested billions of dollars into Papua New Guinea's proposed gas pipeline to Queensland.

Gas Light's managing director Greg Martin said yesterday they are confident of the project going ahead, because one of the project's majority shareholders, Oil Search, has a highly reputable 14 year track record.

Mr Martin said they would be happy to supply the PNG gas into the Australian market, where they run many gas projects, including turning gas into electricity.

He said the PNG gas project would also cement relations between Australia and PNG.

The managing director of Oil Search, Peter Botten said the 3.3 billion US dollar investment decision by AGL on the PNG gas project includes the purchase of some equity from Oil Search.