Oil Search announced the signing of a Pre-Development
Agreement with EnerSea Transport LLC (a US-based technology and
service provider for CNG marine transport solutions) and Itochu
Corporation (a developer of international industrial projects, based in
Japan) to further explore the opportunity for the transportation of
compressed natural gas (CNG) from Papua New Guinea (PNG) to New
Zealand.
Under the Pre-Development Agreement, work will take place on
determining the optimum source of gas from Oil Search’s extensive
resources in PNG, assessing the market potential in New Zealand and
establishing the economic viability of transporting large volumes of
compressed natural gas using EnerSea’s proprietary transport technology.
The Pre-Development Agreement is designed to facilitate Front End
Engineering and Design entry during the fourth quarter of 2004,
depending on the results of these studies.
Commenting on this announcement, Mr Peter Botten, Oil Search’s
Managing Director said:
“Oil Search and our Joint Venture partners EnerSea and Itochu believe the
supply of CNG to the New Zealand electricity generation market may be
economic. We have substantial gas resources in PNG, EnerSea has
leading-edge technology to transport it economically to New Zealand, and
Itochu has the international experience and know-how to support a
project of this kind.
Using the abundant gas resources of PNG to assist NZ gas supply
problems could provide a regional energy solution to a regional energy
problem, benefiting both countries.
CNG supply could mean New Zealand generators would be able to plan
and invest with greater confidence, based on the certainty of a secure
future gas supply, while utilising New Zealand’s existing natural gas
distribution infrastructure.
“The activities that will be carried out by this Joint Venture under the Pre-
Development Agreement are complementary to Oil Search’s other gas
commercialisation initiatives, in developing a diverse PNG in-country gasbased
industry utilising our significant gas resources.”