Australia approves US$1.1b Timor Sea methanol project

Australia approves US$1.1b Timor Sea methanol project

The Australian government has given final approval for a A$2
billion (US$1.1 billion) methanol project in the Timor Sea off
northern Australia, developers announced on Monday in Sydney.

Methanol Australia said Environment Minister David Kemp had
granted approval for the Tassie Shoal Methanol Project, which
when complete will produce 10,000 tons of methanol daily for
export to Asia.

The annual export sales revenue, at current methanol prices,
should top A$1.2 billion.

The project plans to produce methanol using gas from the
nearby Evans Shoal field owned by Shell, Santos and Osaka Gas.

The first stage of the plant is due to be commissioned in late
2006, with the second expected in 2011.

Methanol Australia said it expected to begin engineering and
design studies in May 2003 and would soon start negotiating
commercial agreements.

Engineering group Fluor Australia was appointed project
manager, while Sumitomo Mitsui Banking Corp. was named financial
adviser.

Methanol Australia said the Tassie Shoal Methanol Project was
the first world scale commercial methanol production project to
receive such environmental approval in Australia. -- AFP