Vintage Energy to bring Vali gas field on-line in December to ease east coast gas crisis
Gross 2P reserves are estimated for the Patchawarra reservoir only, with Vintage hopeful that upside could come from the shallower Nappamerri and Toolachee formations.
Vintage Energy (ASX: VEN) is now targeting first gas in December from its 50%-owned and operated Vali field in Queensland’s Cooper Basin to meet the Australian east coast’s high demand.
Vintage’s joint venture partners Metgasco (ASX: MEL) and Bridgeport, which hold a remaining 25% stake each, have revised the scheduled first gas from October to December at the field.
The small delay has been due to the availability of contractor staff and fabrication skills shortages.
As a result, site works for the pipeline installation will begin this week.
The construction contractor has advised the joint venture that mechanical handover will occur in early December.
Commissioning of the field will then begin, with first gas expected before the end of December.
Vintage managing director Neil Gibbons said rescheduling first gas from Vali had been unavoidable.
“It is disappointing to revise our expectations, but there is no escaping our dependency on the availability of crews to perform the work and the impact of the current global supply chain issues we have reported previously.”
Mr Gibbons noted Vali was not the only project to be impacted by skill shortages and global supply chain disruptions, despite its teams, suppliers and contractors working “tirelessly” to mitigate the issues.
“Thankfully, there are skilled, experienced contractor teams operating in the Cooper Basin – albeit, as we have seen, with wait times.”
First gas sales
Mr Gibbons said first gas sales from Vali would occur this calendar year.
“We expect to produce over 100 petajoules of gas (joint venture volume, Vintage share 50%) over many years.”
“Over 80% of the field’s reserves are uncontracted and their availability for supply to eastern Australia is a source to be tapped.”
Under a binding agreement announced in March, Vali has contracted 9-16PJ of gas to AGL from first production from Vali through to the end of 2026.
This represents between 9-16% of the field’s proved and probable reserves.
Gas from Vali will be transported to Moomba for processing prior to sale.