The Papua New Guinea Gas pipeline project is facing a challenge from a leading Australian coal-seam gas producer, Queensland Gas Co.
The National reports the company has announced its moving to double its reserves to 1,000 petajoules by ramping up production.
This comes after the Western Australian premier Alan Carpenter called for a transcontinental pipeline linking Western Australia's gas supplies with the east coast market.
QGC unveiled a 50 million US dollar share-based rights issue to help boost production and reserves in order to get more major customers before the proposed PNG-Queensland pipeline starts production.
