The joint venture operated by Vintage Energy Ltd. has executed a tie-in agreement with the South Australian Cooper basin JV headed by Santos Ltd. that provides for connection of the Vali gas flowline into the Cooper basin pipeline network.
The agreement also provides for ongoing receipt of Vali gas to the Moomba processing plant in South Australia.
The agreement marks completion of all commercial arrangements required for gas produced from Vali field in southwest Queensland permit ATP2021 to flow to Moomba to be processed and supplied for sale to AGL Energy under the sales agreement signed in March (OGJ Online, Mar. 24, 2022).
The signing triggered the first $5 million (Aus.) prepayment of three equal tranches to the Vintage JV from AGL (totaling $15 million) due on achievement of milestones as the project moves to first gas.
These funds will be applied to the work program to bring Vali on stream, scheduled for mid-2022.
Vali field was discovered in 2020 and has independently assessed 2P reserves of 101 petajoules of gas.
Vintage is operator with 50% interest. Metgasco Ltd. and Bridgeport (Cooper basin) Pty Ltd. each hold 25% interest.