The Australian newspaper said the package will help Queensland Alumina Limited (QAL) to modify its power generation operations so that it can utilise gas instead of coal.

QAL is thought to be considering the proposition which could require an agreement to substantially reduce greenhouse gas emissions. The Australian has reported that it is likely that a decision could be announced by the end of the week.

The deal would secure sufficient foundation customers for the PNG-Queensland pipeline project to progress, which is what project proponents ExxonMobil have requested in order to commit itself to the formal front-end engineering and design phase of the project.

If a deal is signed, it is expected that the project will commence FEED before the end of the year.