Queensland Hunter Gas Pipeline Says A$850 Million Project To Proceed
January 16 2009 - 12:45AM
Dow Jones News
The Queensland Hunter Gas Pipeline venture said Friday it still
intends to build an A$850 million pipeline to Newcastle in News
South Wales state despite a decision by BG Group Plc (BG.LN) not to
proceed with the construction of a power generator in the port
city.
QHGP is a joint venture between four private investors and ANZ
Infrastructure Services Ltd.
In May last year, it signed an agreement with Queensland Gas
Company Ltd. to transport 50 petajoules of gas each year for 20
years from Queensland state 820 kilometers south to the now-shelved
Hunter Power Station.
BG Group completed a full takeover of QGC late last year and
decided not to proceed with construction of the A$750 million
facility after a feasibility study was completed in December.
"Obviously having QGC, or now BG, pull out was a big
disappointment for us," QHGP Managing Director Bob Otjen said in a
telephone interview.
"But the need for clean electrical generation in the Hunter
Valley hasn't gone away and there are a number of other parties
that we're talking to and have always been talking to about moving
gas for them."
Otjen said construction on the pipeline is due to start in 2010
with first gas still planned for 2011.
By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957;
ross.kelly@dowjones.com
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