Aussie firms tie up in RI project

Aussie firms tie up in RI project

MELBOURNE (Reuter): Australian energy group Energy Equity
Corp Ltd said it has formed a strategic alliance with Tenneco Gas
Australia, a unit of U.S. gas group Tenneco Inc.

Energy Equity said that under the agreement Tenneco will
purchase 50 percent of the Australian group's interest in the
Sengkang production sharing contract and in the Sengkang power
station project in Sulawesi, Indonesia for A$28 million.

Gas from the Sengkang contract will supply the 135 megawatt
power station, which is to be built, owned and operated by Energy
Equity and Tenneco.

Energy Equity said the purchase is conditional upon:

* The signing of the Sengkang gas sales agreement and power
purchase agreement with the Indonesian government.

* The finalization of sale and purchase agreements between
Tenneco and Energy Equity.

* Tenneco acquiring not less than 9.9 percent of the ordinary
issued shares in Energy Equity.

* Tenneco having the exclusive right to take a 50 percent
ownership interest in Energy Equity's gas and power project at
Barcaldine in central Queensland.