By the OGJ Online Staff
HOUSTON, Apr. 4�Shell International Eastern Trading Co. of Singapore has agreed to buy excess naphtha for 3 years from the refinery InterOil Corp., Cairns, Australia, is building in Papua New Guinea.
Interoil estimates the contract is worth $262 million.
The 32,500-b/d crude capacity, $180 million hydroskimming refinery will be built at Napa Napa on the western side of the Port Moresby Harbor (OGJ Online, Mar. 19, 2001).
InterOil said Papua New Guinea's domestic market will require 65% of the fuel products created by the refinery, leaving 35% for export.
Shell will acquire all naphtha produced that does not go to producing gasoline. Naphtha will represent 70% of the refinery�s export volume.
InterOil also confirmed it and Shell are discussing a strategic alliance involving the refinery.