Vintage Energy Ltd: Vali gas field JV granted interim authorisation
Vintage, Metgasco and Bridgeport are joint venture partners at the Vali field, a new gas field in the early stages of development which is located in the Queensland Cooper/Eromanga Basin. None of the parties currently produce or sell natural gas.
Interim authorisation allows the parties to begin jointly negotiating and entering into conditional long-term agreements with customers for the supply of gas from the Vali field.
The parties can also jointly supply minor quantities of gas to customers on a fully interruptible basis for a short period until 31 December 2021, while they establish the flow characteristics of the Vali field.
"The ACCC considers interim authorisation will provide investment certainty for the parties to expedite development of the Vali field and bring this new gas supply to the market sooner," ACCC Commissioner Stephen Ridgeway said.
"Given the small amount of the gas to be jointly marketed, the proposed joint marketing arrangements are unlikely to adversely affect competition. Any long-term gas supply agreements entered into with customers are conditional on the ACCC's final determination."
Vintage, Metgasco and Bridgeport applied for authorisation to jointly market and sell gas from the Vali field to customers on common terms and conditions including price. Without authorisation, the joint marketing arrangement would risk breaching competition laws.
More information, including the ACCC's interim authorisation statement of reasons, is available at Vintage Energy Ltd - Vali Gas Joint Venture.
Vintage Energy Ltd (ASX:VEN) operates the Vali field, and holds 50 per cent interest in the Vali joint venture.
Metgasco Ltd (ASX:MEL), and Bridgeport (Cooper Basin) Pty Ltd (a wholly owned subsidiary of New Hope Corporation Ltd. (ASX:NHC)), each hold 25 per cent interest in the Vali joint venture.
Under the Vali joint venture agreement, Bridgeport may reserve 50 per cent of its share of gas to Brickworks Limited (ASX:BKW).
The amount of gas to be jointly marketed from the Vali field is small compared to the overall size of the east coast gas market. Upon full development of the Vali field, its annual gas production will be equal to approximately 0.5 per cent of the annual domestic gas demand in the east coast market, and less than 0.2 per cent when LNG export demand is included with domestic demand.
About Vintage Energy Ltd:
Vintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.
Vintage Energy Ltd
Neil Gibbins Managing Director +61 8 7477 7680 firstname.lastname@example.org