Vintage Energy Ltd (Vintage, ASX: VEN) is pleased to advise that a memorandum of understanding (MOU) has been signed with Australia’s largest gas infrastructure company, APA Group (APA, ASX: APA), and Comet Ridge Galilee Pty Ltd (Comet Ridge, ASX: COI).
Under the terms of the MOU, APA will undertake a work program to identify a pipeline route to connect the Galilee Basin in Queensland to Australia’s east coast gas markets. APA’s proposed route to market will also allow for gas to be supplied to the large mining projects planned for the Galilee Basin giving them an alternative to using diesel for their operations. The work program will include on the ground surveys, engaging with local stakeholders, undertaking initial environmental studies and applying for a Pipeline Survey Licence.
APA, Comet Ridge and Vintage have agreed a framework to negotiate a Gas Transportation Agreement (GTA). Under this GTA, APA would build, own and operate new pipeline infrastructure and other related infrastructure to transport gas from the Galilee Basin Deeps Joint Venture permits held by Vintage and Comet Ridge.
The Managing Director of Vintage, Neil Gibbins, believes that this MOU is further recognition of the potential of the Galilee Basin as a genuine provider of commercial quantities of gas to the east coast of Australia.
“We believe that the Galilee Basin has the potential to produce material quantities of gas. In order to fully commercialise any discovered gas, we will need to have access to the Australian east coast markets, so this MOU with APA is a large step toward making this possible. The timing of this MOU with APA couldn’t be better considering our imminent appraisal drilling campaign of the Albany-2 and Albany-1/ST1 wells.”
APA’s Managing Director, Mick McCormack said “We are pleased to be progressing to the next stage of work with Comet Ridge and Vintage to enable the development of the Galilee Basin as a new source of gas for Australia’s east coast.
“APA continues to work collaboratively with gas producers in the Galilee and Bowen basins to enable gas resources to be connected to market. The interconnected nature of APA’s east coast grid will enable producers such as Comet Ridge and Vintage, to explore opportunities to market their gas in domestic and international gas markets. APA’s infrastructure continues to pro-actively connect more gas resources with gas markets to meet the needs of customers.”