Po Valley pens gas supply deal with BP in Italy
ASX-listed Po Valley Energy has signed an agreement with BP to supply gas from its Podere Maiar-1 facility in Italy, it said on February 14.
The agreement between Po Valley Operations, a unit of Po Valley, and BP Gas Marketing, an indirect, wholly-owned subsidiary of BP International relates to the expected gas production from the soon-to-be-completed Podere Maiar – 1 facility in the Selva Malvezzi production concession located in the Po Valley region of Italy.
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The 18-month contract is expected to commence on April 1, 2023 with the potential to extend. Po Valley and its joint venture partners will supply an estimated 37,000,000 m3 of gas under the contract. Gas supply price will be linked to Italy’s Heren PSV day ahead mid-price assessment, Po Valley said.
“We look forward to our scheduled gas production commencing at Podere Maiar-1 in April, bringing to fruition the first step of this exciting project. We continue to progress developments on time and on budget, and are fully funded to production,” Po Valley chairman Kevin Bailey said.
The Selva Malvezzi concession is owned by joint venture partners Po Valley (63%) and Prospex Energy (37%). Po Valley in August 2022 announced it had received firm commitments to raise A$4.5mn ($3.13mn) via a share placement to develop the Podere Maiar gas field.