19 May 2003

Japan considering major gas investment in PNG

5:00 pm on 19 May 2003

The Mitsubishi Gas Corporation has told Papua New Guinea that it would undertake feasibility studies for a 800 million US dollar gas project for the Japanese market.

The Post Courier says the commitment came after PNG's Prime Minister, Sir Michael Somare and Minister for Petroleum and Gas, Sir Moi Avei, met with Mitsubishi officials in Tokyo last week.

Sir Moi says the feasiblity study will determine where the project will be located and the potential development of a gas pipeline to Port Moresby.

He says also that the Japanese market was capable of buying all the methanol produced if the project came on stream.

A project operator to drive the multi million dollar venture is likely to be announced this week once discussions with Mistubishi are finalised.