Vintage JV, AGL gas deal becomes unconditional
Vintage Energy-led joint venture’s (JV) gas sales agreement signed last month with AGL is now unconditional following execution of a Vali field gas processing services term sheet with South Australian Cooper Basin JV, Vintage said on April 19.
Securing an agreement for the processing of Vali gas was a condition precedent to the AGL gas supply contract. This event has also allowed the JV to call on AGL to make the first two of three A$5mn pre-payments under the agreement, which are to be applied to funding capital works to bring Vali to first gas, Vintage said.
The processing agreement includes the terms agreed for the transportation of gas from Vali into the Moomba gas facility and its processing for supply to AGL for the duration of the contract.
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The agreement is for the sale of gas produced from the Vali field in the Cooper basin from start-up, which is expected mid-2022, through to the end of 2026. Vintage operates the Queensland permit ATP 2021 containing the Vali gas field with a 50% interest. Metgasco and Bridgeport each hold 25% interest.
The Vintage-led JV has contracted to supply between 9 and 16 petajoules of gas to AGL over a period of approximately four and a half years. The contract represents between 9% and 16% of the field's announced proved and probable reserves.
Production from the Vali gas field, discovered in 2020, is expected to commence following the completion of the field's three wells and connection to the nearby Moomba gas gathering network.