- ATP 2021 Joint Venture signs final Gas Sales Agreement (GSA) with AGL Wholesale Gas Limited
- Total volume estimated at between 9 PJ and 16 PJ (gross)
- Pricing agreed at a mix of fixed and variable market rates
- GSA terms consistent with the initial Gas Sales Heads of Agreement announced 6th December 2021
- Deal includes a pre-payment by AGL of $15 million to the Joint Venture, funding Vali Field work to first gas
Metgasco Ltd is pleased to announce execution of a definitive gas sales agreement between the ATP 2021 Joint Venture parties (“JV”) and AGL Wholesale Gas Limited (“AGL”) for the sale of all gas produced from the Vali Field from field start-up (expected mid-CY2022) through to the end of CY2026.
The terms of the GSA reflect the Heads of Agreement (“HOA”) between the JV and AGL announced 6 December 2021, following a competitive process. Commencement of the GSA is subject to fulfilment of conditions precedent.
Production from the Vali gas field, discovered in CY2020, is expected to commence following completion of the field’s three wells and connection to the nearby Moomba gas gathering network.
Gas produced during the production appraisal is to be sold to AGL on a mix of firm and variable pricing at market rates. Under the terms of the GSA, the joint venture will receive pre-payments totalling $15 million in three equal tranches from AGL on achievement of milestones as the project moves to first gas. These funds are to be applied specifically to funding the work program to take Vali to first gas. Metgasco Ltd is fully funded for capital expenditure at Vali through to first cash flow.
The first pre-payment is to be made on signing of the GSA and satisfaction of its conditions precedent which include execution of upstream transportation and processing agreements.
