Vintage Energy (ASX: VEN) is targeting first gas from its 50%-owned Queensland-based Vali field early next year to meet mounting energy demand along Australia’s east coast.
Commissioning will occur in January after the Christmas and new year break – a short delay from the previous December schedule.
The revised schedule has been attributed to weather events this month, which disrupted pipeline installation work, and necessitated rework in some cases.
Rainfall also caused limited site access.
“Forecasts now indicate the works required for handover are unlikely to be completed prior to the year-end break for field contractors commencing 22 December 2022,” Vintage stated.
Work will resume onsite around 4 January, with handover, commissioning and gas sales to follow shortly after.
Advancing Vali gas field to production
Vintage is the operator and owns 50% of the Vali field in the Cooper Basin with joint venture partners Metgasco (ASX: MEL) and Bridgeport holding 25% each.
The field comprises Vali-1 ST1, Vali-2 and Vali-3 wells which have all undergone completion campaigns and are set up for connection and gas production.
Trenching is almost complete on the main export Vali-Beckler pipeline, with installation of the Fiberspar pipe to begin today.
Other recent works comprise completion of pond liner installation and concrete footing placement will begin this weekend.
Development work through to 21 December will focus on testing of all flow lines and construction of key infrastructure to enable commissioning to begin as soon as possible when work resumes in January.
First gas from the field is contracted to AGL under a binding contract executed in March this year.
AGL will purchase between 9-16 petajoules of gas from Vali from first production through to the end of 2026.
As part of this, AGL has pre-paid $15 million to the joint venture for initial gas.
All-up, the field has 51PJ in proved and probable gas reserves and 65PJ in 2C contingent resources.
Vintage is also fast-tracking the adjacent Odin gas field, which is owned under the same joint venture terms with the same parties.
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