Metgasco crosses final hurdle to Vali gas sales
Metgasco and its Vali gas field partners are another step closer towards producing gas after executing a pipeline tie-in agreement with the South Australian Cooper Basin (SACB) JV.
This follows on the back of the Vali joint venture reaching a processing agreement with the SACB in mid-April.
The tie-in agreement provides for the connection of the Vali gas flowline and ongoing receipt of Vali gas into the SACB pipeline network.
Metgasco (ASX:MEL) noted that the tie-in deal marks the completion of all commercial agreements required for gas produced from the Vali field to flow to Moomba for processing and sale to AGL under the gas sales agreement.
The JV, which is led by Vintage Energy (ASX:VEN), has contracted to supply between 9 petajoules and 16 PJ of gas to AGL over a period of about four and a half years.
This represents between 9% and 16% of the field’s announced gross Proved and Probable Reserves totalling 101PJ.
This article was developed in collaboration with Metgasco, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.