By Paul Osborne, State Political Correspondent TOWNSVILLE, Sept 3 AAP - Queensland Premier Peter Beattie will visit Papua New Guinea later this year in a bid to further a $6 billion gas pipeline project. Mr Beattie told a business breakfast in Townsville today he remained committed to the project, despite the government deciding to use coal seam methane for a power station in Townsville. "I believe it will happen - it's a case of timing, basically," Mr Beattie said. Mr Beattie said he had written to PNG PM Michael Somare seeking talks before the end of the year. Oil Search Ltd managing director Peter Botten said last week the company and partners were looking at location options for the potential PNG-Queensland pipeline. Oil Search owns a 37 per cent interest in the gas pipeline project between Queensland and the PNG highlands. The company and project operator ExxonMobil have been in advanced negotiations for sales of PNG gas which, if successful, would provide the volumes required for the pipeline to proceed. They have already signed a conditional agreement with The Australian Gas Light Co to supply between 40-50 petajoules a year for a 20 year period, primarily to the eastern states. The proposed pipeline could run down to Moomba in South Australia, with a sideline to Gladstone and Brisbane. Mr Beattie said today he did not share some industry and government figures' concerns about sovereign risk. "When people raise the issue of sovereign risk you've got to remember oil has been coming out of Kutabu for many years without one drop being lost or wasted or delayed," Mr Beattie said. "PNG gas will simply be in a pipeline which runs over the same corridor." Mr Beattie said the pipeline offered "unparalleled economic development" and cheaper gas. "Gas prices in Australia are too high and we want to see more competition," Mr Beattie said. Gas also offered environmental benefits in a period which was likely to see a future government bring in greenhouse gas penalties, he said. AAP pjo/sc/cjh
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