Prospex Energy plc said that its joint venture partner had signed the contract for the installation of the gas plant and pipeline at a lower cost on the Podere Maiar gas field in the Po Valley, northern Italy.
JOINT VENTURE
Prospex holds a 37% working interest in the licence with operator Po Valley Energy Ltd holding the remaining 63%.
The field lies within the Selva Malvezzi production concession.
PIPELINE
Italian engineering firm TESI Srl will install a gas plant and pipeline for the Podere Maiar gas field in Italy.
Prospex said that a 1km four-inch pipeline would connect Podere Maiar to Italy’s gas grid.
COSTS
The cost of constructing the gas treatment plant and pipeline totals €3.45 million (£2.91m) with €1.28m (£1.08m net to Prospex).
The company said that the figure was €130,000 (£110,000) less than previously forecast (€48,000 net to Prospex).
Once installed, the gas plant capacity will be some 150,000 standard cubic metres (scm) per day and pipeline capacity will be 300,000 scm per day.
Construction is due for completion during the first quarter of 2023 and first gas at the start of Q2 2023.
Prospex said it expected to fund its share of capex from existing resources, subject to costs and first production timing remaining on the revised schedule.
START DATE
Chief executive Mark Routh added that the TESI contract secured both the costs and the schedule to first gas which was expected some three months ahead of previous estimates.
“Field development work is expected to commence mid-September with all construction and essential procurement contracts now in place.”