Chevron, IPC join forces on Papua New Guinea-Queensland gas pipeline project

Oct. 21, 1996
Pandora Project [31727 bytes] International Petroleum Corp. (IPC) and Chevron Corp. have agreed to join forces in developing a proposed major natural gas pipeline system linking Papua New Guinea and northern Queensland, Australia. IPC estimated project development cost at $1.3 billion. Tentative plans call for the project to begin in early to mid-1997, with start-up scheduled in mid to late 1999 or early in 2000.
International Petroleum Corp. (IPC) and Chevron Corp. have agreed to join forces in developing a proposed major natural gas pipeline system linking Papua New Guinea and northern Queensland, Australia.

IPC estimated project development cost at $1.3 billion. Tentative plans call for the project to begin in early to mid-1997, with start-up scheduled in mid to late 1999 or early in 2000.

IPC and a Chevron Corp. unit earlier signed a cooperation agreement to study feasibility of a laying a New Guinea-Australia pipeline from Pandora gas field in the Gulf of Papua to Queensland (OGJ, Apr. 1, Newsletter).

When completed, the onshore-offshore pipeline system will total 2,055 km.

IPC, Vancouver, B.C., is operator of Pandora gas field and developer of the Pandora-Queensland gas pipeline project. It is majority interest owner in the PPL 82 joint venture (JV), which consists of IPC 48.189%, Ampolex Ltd. 16.3636%, Command Petroleum Ltd. 12.7273%, Claremont Petroleum NL 6.3636%, Pacarc Energy NL 6.3636%, Secab Niugini 5%, and OSL 5%.

Chevron is operator of Papua New Guinea's Kutubu oil fields development and crude oil export project, as well as developer of a proposed Kutubu-Queensland pipeline.

Project highlights

IPC said the PPL 82 JV will contribute its work to date developing the Pandora-Queensland pipeline, and Chevron will contribute its work to date on the Kutubu-Queensland pipeline.

A Chevron unit, to be designated later, will take over as project developer.

Pipeline origination point in Papua New Guinea will be the Chevron group's Lake Kutubu area fields in the Papua Highlands.

First segment of the 18 in. main transmission line will consist of 170 km onshore pipeline and parallel an existing field oil export line. The gas line will link with a 100 km subsea segment and connect with a Chevron marine terminal in the Gulf of Papua (OGJ, Aug. 3, 1992, p. 50).

At that point, 135 km of subsea line will be laid to Pandora offshore gas field, off Port Moresby, Papua New Guinea. From Pandora field, 340 km of subsea line will be laid under Torres Strait to near Injinoo onshore, at the tip of Cape York, North Queensland. At Injinoo, the gas will be processed and compressed for further transport after liquids are stripped. The next leg will extend 895 km to Mareeba.

A 16 in. final leg will extend 320 km to terminus at Townsville, Queensland.

A 95 km lateral will connect Weipa, Queensland, to the main line.

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