Australia's Vintage signs additional gas sale deal with Pelican Point Power

Vintage Energy and its joint venture partners have signed an additional two-year gas sale agreement with Pelican Point Power for the Odin gas field in the South Australian Cooper Basin, Vintage announced on October 5.

The agreement will see the joint venture parties supply gas to Pelican Point Power from January 1, 2025 to December 31, 2026. The prices agreed for the new agreement are consistent with current expectations for gas supplied to the east coast domestic market in 2025 and 2026, the company stated.

The new sale follows the announcement in May 2023 of an agreement between the joint venture parties and Pelican Point Power for the supply of gas from Odin from field start-up to December 2024, the maximum period then available under then existing ACCC authorisation.

Vintage Energy and its joint venture partners are exempted from the gas price cap as producers supplying less than 100 petajoules exclusively to the domestic market.

Pelican Point Power Station is a 497 MW combined cycle gas power plant in South Australia operated by Engie Australia & New Zealand. The plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.

The signing of the new agreement follows the commencement of supply from Odin to Pelican Point Power last month. The new transaction was initiated following receipt of ACCC authorisation, allowing Vintage Energy and its joint venture parties to jointly market gas for longer terms than the preceding interim authorisation which permitted marketing for supply to December 2024.

The Odin project is located in PRL 211. Metgasco and Vintage Energy, which is the operator of the project, own 25% and 50% stakes, respectively, while Bridgeport holds the remaining 25%. The Odin gas field was discovered by the joint venture in 2021. The field has independently certified contingent resources of 40 petajoules.