- Metgasco (MEL) and PRL211 joint venture partners ink a gas sales agreement with Pelican Point Power for the supply of gas from its Odin gas field
- The Odin gas field was discovered by the PRL211 joint venture in 2021, with the JV made up of MEL, Vintage Energy (VEN) and Bridgeport
- The new agreement will see the PRL211 joint venture supply gas to the Pelican Point power station field until December 31, 2024, the maximum contracted period
- PRL211 is targeting gas production delivery through Odin by Q3 2023
- Metgasco last traded at 1.8 cents
Metgasco (MEL) and its PRL211 joint venture partners have penned a gas sales agreement with Pelican Point Power for the supply of gas until the end of 2024.
Pelican Point Power is a joint venture between ENGIE Australia & New Zealand and Mitsui & Co. Its Pelican Point Power Station is a 497 molecular weight (MW) combined cycle gas power plant in South Australia, considered a “critical infrastructure asset” for energy security in the state.
The new agreement will see the PRL211 joint venture supply gas from Odin to the Pelican Point power station field until December 31, 2024 – the maximum contracted period possible.
The Odin gas field was discovered by the PRL211 joint venture in 2021, with the JV made up of Metgasco, Vintage Energy (VEN) and Bridgeport.
The new contract was locked in less than five months after the joint venture resolved to accelerate the connection of the Odin-1 gas well, allowing gas from the field to be supplied to eastern Australia at the earliest opportunity.
Meanwhile, Metgasco reported work on the accelerated connection, involving a 1.4 kilometre-spur to the existing Vali-Beckler pipeline, is advancing on schedule and budget for first flows in the coming September quarter.
“This deal with ENGIE, a major energy provider to Eastern Australia, marks the final step in the commercialisation process of the Odin gas field,” Metgasco Managing Director Ken Aitken said.
“Over the course of the 17-month term of this gas sales agreement, we anticipate significant cashflow for the joint venture.
“Furthermore, this agreement is anticipated to enhance our proved and probable reserve position and support Odin field appraisal drilling.”
The PRL211 joint venture is targeting gas production delivery through Odin by Q3 2023.
MEL last traded at 1.8 cents.