- Joint venture (JV) partners Vintage Energy (VEN) and Metgasco (MEL) face delays at the Vali gas project in Queensland in light of global supply chain issues
- The companies have pushed back construction, with completion expected in September and first gas expected in September or October
- However, Vintage Energy is still expecting cash generation from gas supply to commence in the first half of FY23
- Operations are continuing to progress on site, with capital items for construction continuing to be sourced and a drill rig contracted for well completions
- Shares in MEL are trading flat at 2.4 cents each at midday AEST, while VEN shares are down 2.41 per cent to 8.1 cents each at the same time.
Joint venture (JV) partners Vintage Energy (VEN) and Metgasco (MEL) are facing delays at the Vali gas project in Queensland in light of global supply chain issues.
Vintage Energy, which acts as the operator of the project, said construction had now been pushed back, with completion expected in September and first gas expected in September or October.
Further, heavy rainfall in late April and May delayed planned fracking operations in the Vali-2 and Vali-3 wells in the project area. The company said it now expected to complete the frac campaign in roughly 3 weeks, which would affect the planned timeline for first gas from Vali.
Nevertheless, the company said it was still expecting cash generation from gas supply to commence in the first half of FY23.
Operations are continuing to progress on site, with capital items for construction continuing to be sourced and a drill rig contracted for well completions.
This means AGL can now invoice the final $5 million pre-payment to the joint venture for the drill rig contract.
Shares in MEL were trading flat at 2.4 cents each at midday AEST, while VEN shares were down 2.41 per cent to 8.1 cents each at the same time.