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Highlights
- The Podere Maiar-1 or PM-1 is the gas facility at PVE's Selva Malvezzi production concession (Italy)
- Po Valley had finalised commercial arrangements for PM-1 gas supply earlier this year
- First gas supply would begin after final operation and safety inspection, most likely before the end of May 2023
Po Valley Energy Limited (ASX: PVE), an Australian-listed explorer with natural gas interests in Italy, has announced the completion of Podere Maiar-1 gas plant construction. PVE has said that the PM-1 gas plant is complete and SNAM connections and transmission arrangements have been finalised, which enables PM-1 gas delivery to the SNAM grid. The process of recovering €757,000 performance bond funds (100% basis - €476,910 net to PVO) has also begun.
The first gas supply from PVE's Italian asset would be achieved after final operation and safety inspection, which will likely be achieved before the end of this month.
Source: PVE Investor Presentation
PVE’s ASX shares traded at AU$0.071 at the time of writing on 16 May 2023.
Delivery of first gas expected soon
Po Valley Energy states that the completion of the gas plant, achieved largely on schedule and budget, is "particularly noteworthy" against the backdrop of inflationary and supply chain issues. The Podere Maiar gas facility is in PVE's Italy-based Selva Malvezzi production concession. The facility is now ready for commissioning, which means delivery of first gas can be expected soon.
Finalisation of SNAM connections, coupled with commercial arrangements that are already in place, is the beginning of delivery of gas from PM-1 to the SNAM grid (Italy). Notably, PVO -- the wholly owned subsidiary of PVE -- has a gas supply agreement, announced earlier this year, in place. SNAM connection completion also means that PVO can now begin the recovery of the performance bond funds deposited with SNAM (€476,910 net to PVO).
Lastly, it is stated that initial gas production depends on the signoff of the final operation and safety inspection and grant of sanction by Italy's Ministry of Environment and Energy Security, which is expected to be finalised by the end of current month.
Data Source: Company update
Statement by PVE Chairman
Kevin Bailey has lauded the development, which he states marks a "significant achievement" for the company and PVE's stakeholders. Additionally, he commented that PVE is "well-funded" to meet all financial obligations.
