Papua New Guinea-Queensland pipeline takes step forward

The Papua New Guinea-to-Queensland natural gas pipeline project—now referred to as the Highlands Gas Project—has moved forward to its front-end engineering and design (FEED) phase following two conditional agreements signed recently for the sale of gas in Australia.Total project cost of the 3,600-km (2,250 mile) pipeline would be about $3 billion. The FEED stage would cost about $100 million.Project operator Melbourne-based Esso Highlands Ltd. has agreed with Queensland Alumina Ltd. (QAL) for the sale of 320-800 million cu m of gas/year for 20 years to QAL's alumina refinery in Gladstone on the central east coast of Queensland. It will also sell 265 million cu m/year of ga...

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