Vintage signs 1st supply deal for Odin gas field
Vintage Energy and its partners have signed the first gas supply deal for the Odin gas field, located in Australia’s Cooper basin, Vintage said on May 15. The contract is with Pelican Point Power Station, a joint venture between Engie Australia and New Zealand (72%) and Mitsui & Co (28%).
The contract will see Vintage supply gas from the Odin field to Pelican Point Power Station from field start-up until December 2024. The agreement provides Pelican Point with all of Odin's gas production over the contract term with commercial terms "that encourage field appraisal and production expansion".
The contract has been secured less than five months after the joint venture resolved to accelerate the connection of the Odin-1 gas well so gas from the field could be supplied to eastern Australia at the earliest opportunity. The contract is a significant milestone for the Odin gas field, which is expected to become Vintage's second producing field after Vali.
The Vali gas field and facilities are owned by the ATP 2021 joint venture which has an identical composition to the PRL 211 joint venture. Vintage is a 50% interest holder and operator of both the joint ventures. Other interest holders are Metgasco (25%) and Bridgeport (25%).
Pelican Point Power Station is a 497 MW combined cycle gas power plant in South Australia and is regarded as a critical infrastructure asset for energy security and system stability in South Australia, Vintage said.
The accelerated connection of the Odin gas well is progressing on schedule and budget. This is a positive sign for the project, the company said, and it is expected that gas from the Odin gas field will be flowing to eastern Australia in the coming September quarter.
Vintage managing director, Neil Gibbins, said: "This agreement expands our production and revenue-generating footprint and provides an attractive commercial footing for addressing the promising appraisal opportunities we have identified on the field."
The Odin gas field was discovered by the joint venture in 2021. The field has independently certified contingent resources of 40 petajoules.