Vintage Energy to bring Vali gas project online next month
Vintage Energy is also targeting first gas from Odin next year with work starting to connect the field to Vali’s facilities.
Gas explorer and developer Vintage Energy (ASX: VEN) has confirmed its Vali gas field in the Cooper Basin is on track for commissioning and first gas this January.
Work has also begun on the accelerated connection to the Odin gas field to enable gas production from the third quarter of 2023, the company announced.
Vintage operates both projects with a 50% interest with joint venture partners Metgasco (ASX: MEL) and private company Bridgeport (Cooper Basin) each holding 25% stakes.
Vali field on track for first gas next month
The Vali gas field is being connected to the South Australian Cooper Basin gas gathering infrastructure to supply eastern Australia from next month.
Vintage said site works have progressed in line with a January 2023 commissioning schedule, with flowlines and export pipelines now installed and successfully pressure tested.
Mechanical installation is progressing, with lease foundations in place at Vali-1 and Vali-3, skids and pipework on site and largely assembled, and welding is well advanced, the company added.
Metering facility foundations are nearing completion and risers are in place, with metering skid equipment in the process of being moved into place for installation and welding in January. Foundations have been laid for the Beckler tie-in and mechanical installation has commenced.
Vintage noted work will be suspended from over the Christmas break from 22 December until the first week of January.
Vali has been independently certified as having proved and probable gas reserves of 101 petajoules. The ATP 2021 joint venture has contracted to supply an estimated 9 – 16 PJ gas to AGL Energy (ASX: AGL) from field start up to the end of 2026.
Odin connection fast-tracked to meet winter gas demand
Vintage announced in November that it would fast-track connection of the Odin gas field in PRL 211 to the Vali facilities to meet an expected increase in demand over the winter months.
In today’s announcement, the company confirmed materials have been sourced for the 1.3-kilometre connection to the Vali-Beckler export pipeline, including flowline and fibreoptic cable.
Regulatory submission for flowline installation has been prepared and lodged, and the route has been surveyed. Trenching and installation are scheduled for after the Christmas break following regulatory approvals.
The Odin-1 gas discovery was made in 2021 and has since been independently certified as holding a 2C contingent resource of 40 PJ.
This ‘accelerated’ connection is in advance of the Odin long-term connection, which involves tie-back of the field to the Vali facilities; this is expected to take “at least” another six months, according to Vintage.
Energy price relief plan
Last week, federal, state and territory governments of Australia agreed at a national cabinet to an Energy Price Relief Plan, a four-point plan that will cap the price of gas at $12 per gigajoule and black coal at $125 per tonne for 12 months, as well as provide $1.5 billion in targeted bill relief for eligible households and businesses.
In respect of the temporary gas price cap, Vintage referenced the explanatory memorandum to the bill assented to by the parliament: “The gas market emergency price order would apply to uncontracted gas offered on the wholesale market from currently operational fields capable of supply during the period in which the order is in force”.
Vintage said it would provide further information on the Act and its significance for the company’s operations in due course.