Vintage Energy to fast-track first gas from Odin field to meet east coast demand

As the east coast energy crisis continues, Vintage Energy (ASX: VEN) and its joint venture partners will fast-track connection of the Odin gas field with first sales expected next year.

Vintage owns 50% and is operator of the Odin field, with partners Metgasco (ASX: MEL) and Bridgeport each retaining a 25% interest.

The joint venture announced this morning a two-stage connection project, with first gas sales anticipated in the September quarter of next year.

Vintage managing director Neil Gibbins said the project would enable early production from Odin to serve market demand.

“There are two clear conclusions from the work done since announcing our intention to bring Odin to market,” he said.

“First, a compelling case exists for gas from Odin to flow to east coast gas buyers as soon as possible. Second, our concept engineering studies identified the best option, for operations and economics, is for Odin to be connected to the facilities currently being constructed at Vali.”

However, Mr Gibbons said the timeline of connecting to the nearby Vali field would take longer than 12 months, due to ongoing supply chain challenges.

Two-stage project

To fast-track first gas from Odin, Mr Gibbons said the project had been reconfigured into two stages: Odin accelerated and Odin long-term.

“We have set ourselves to start supplying gas from Odin as rapidly as possible whilst implementing the best long term connection option for the field.”

Under the first Odin accelerated stage, the connection will use temporary rental equipment and require installation of a 1.4km Fiberspar from the well site to the mid-line riser of the pipeline that is being installed to transport gas from Vali to Moomba gas gathering network at Beckler.

In the longer-term connection, metering and dewatering of the Odin gas stream will be done at Vali prior to transport to Beckler.

This will require a 6.3km Fiberspar pipeline from the mid-line riser to the Vali facilities.

A front end engineering design study for the longer-term project is expected to begin later this month.

A well completion for Odin was completed mid-year as part of the Vali field campaign.

First gas from the adjacent Vali field in Queensland’s Copper Basin is expected before the end of December.

Vintage also operates the Vali field with the same joint venture partners as Odin.

In bringing Odin online, Vintage will fund its share from internal resources.