New 2-year Odin Gas Supply Agreement
Melbourne, Oct 5, 2023 AEST (ABN Newswire) - Vintage Energy Ltd (
ASX:VEN), 50% interest holder and Operator of the PRL 211 Joint Venture ("the joint venture", other interest holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%) announces an additional two-year gas sale under the master gas supply agreement for the Odin gas field.
The joint venture parties have agreed and signed terms with Pelican Point Power Limited for the supply of gas from 1 January 2025 to 31 December 2026. The new sale follows the announcement on 15 May 2023 of agreement between the joint venture parties and Pelican Point Power for supply of gas from Odin from field start-up to December 2024, the maximum period then available under then existing ACCC authorisation.
Signing of the new agreement follows the commencement of supply from Odin to Pelican Point Power on 14 September 2023.
The new transaction was initiated following receipt of ACCC authorisation (announced 28 May 2023), allowing Vintage and its joint venture parties to jointly market gas for longer terms than the preceding interim authorisation which permitted marketing for supply to December 2024.
Prices agreed for the new agreement are consistent with current expectations for gas supplied to the east coast domestic market in 2025 and 2026. Vintage and its joint venture parties are exempted from the gas price cap as producers supplying less than 100 PJ exclusively to the domestic market. The agreement provides for interruptible supply of all gas produced from the Odin gas field in the contract period.
Pelican Point Power Station is a 497 MW combined cycle gas power plant in South Australia operated by ENGIE Australia & New Zealand. The plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.
Vintage Managing Director, Neil Gibbins, said "we are very pleased to have extended our agreement with ENGIE for supply to Pelican Point Power.
"Interest in securing gas supply remains strong and we were keen to add to our contract coverage at Odin once we were granted the necessary ACCC authorisation. The price cap exemptions provided to producers selling to the domestic market provides a strong incentive for connection and contracting of new gas supply and, with this latest agreement, we have now met our contracting targets for the medium term. Vintage has a strong contractual position as a dual field producer".
About Vintage Energy Ltd
Vintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.
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