sign's up txu, page-2

BRISBANE, Dec 13 AAP - ExxonMobil Corp subsidiary, Esso
Highlands Ltd, today said talks were continuing with more potential
customers to ensure the $6-7 billion Papua New Guinea to Queensland
pipeline could proceed within the new year.
The PNG gas project participants today confirmed it had reached
conditional agreement with TXU Electricity Ltd on commercial terms
for the sale of gas.
The conditional term sheet covers the sale of gas over a period
of 20 years from 2007.
Annual quantities will be between 20 to 35 petajoules per annum
(PJPA).
The gas will be supplied at Moomba.
Esso Highlands president and PNG Gas Project Owners Group
chairman, Bill Threlfall, today said negotiations were continuing
with other potential customers.
He said the project must have sufficient sales volumes committed
this month to be in a position to make a decision to enter the
Front End Engineering and Design (FEED) phase by early next year.
FEED entry in early 2003 is critical in order for deliveries of
gas to occur in 2006.
The PNG Gas Project participants are ExxonMobil (Esso Highlands
Limited as project operator), Oil Search, ChevronTexaco, MRDC (a
PNG company representing landowner interests) and Japan PNG
Petroleum.
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