Small gas producers eye expansion as large projects...

Small gas producers eye expansion as large projects shelved:
From:
Colin PackhamEnergy and resources reporterApr 14, 2023 – 4.31pm

“The effect of the intervention by the government has the opposite effect than what they intended. The bigger guys have put off projects because of uncertainty and the intervention, and we are getting inundated with requests for gas,” Neil Gibbins, managing director of Vintage Energy, told AFR Weekend.

The small cap last month began production at its Vali field in the Cooper Basin, just a few years after reserves were discovered. The quick turnaround was driven by a supply contract with AGL Energy that saw Australia’s largest retailer prepay $15 million for between 9PJ to 16PJ of gas until the end of 2026.

As it meets that supply contract, Mr Gibbins says the company is developing a plan to commercialise production of the remaining 85PJ of gas at the development.

“We are doing appraisals by production, and we expect to have a development plan finished over the four to six months. Then we can go out and market the additional gas, and we also have a second discovery right next door,” Mr Gibbins said.

Approvals sought

The adjourning discovery known as the Odin gas field is about seven kilometres west of Vali and estimated to have about 40PJ of gas.

Vintage is one of a growing number of small caps looking to capitalise on Australia’s looming east coast shortage.

The Australian Energy Market Operator last month warned Queensland’s LNG exporters may need to divert gas to domestic customers to head off a shortfall in the southern states this winter and even then, shortages may occur.