TAIWAN SIGNS 20-YEAR GAS DEAL WITH PNG VENTURE

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ExxonMobil project contracted to capacity

MELBOURNE, Australia (Radio Australia, March 1, 2010) – The Papua New Guinea liquefied natural gas project has signed a 20-year gas supply deal with Taiwan's largest energy importer.

Esso Highlands, the ExxonMobil subsidiary managing the PNG LNG project, told the Australian Stock Exchange on Tuesday it has signed a sale and purchase agreement with CPC Corporation Taiwan to supply approximately 1.2 million tonnes of gas a year.

The project's total output is expected to be around 6.6 million tonnes a year.

ExxonMobil says the deal means all the PNG LNG project's production capacity has been contracted.

Peter Botton, managing director of junior partner Oil Search, says the way is now clear for the project's financial closure.

Agreements with lenders are expected to be finalised before the end of the month.

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