Highlights
- Po Valley signs new GSA with Hera Trading to supply gas from its Podere Maiar-1d well facility in Italy
- 12-month contract to commence on 1 October 2025 with potential to extend
- Po Valley and its joint venture partners will supply an estimated 27,963,000 standard cubic metres of gas under the contract
- Gas supply price will be linked to the Italian Gas Index (IG INDEX GME)
- Podere Maiar-1d has delivered ~54.4 million scm of gas from the C2 level (PVE share is 63% of total) to date since inception July 2023
Po Valley Energy has announced that its wholly owned subsidiary Po Valley Operations Pty Limited (PVO), along with its Selva Malvezzi JV partners, PXOG Marshall Limited (PXOG) and UOG Italia Srl (UOG) ('Prospex Group'), have signed a new gas sales agreement (GSA) with Hera Trading S.r.l (Hera Group).
Hera Trading, a group entity headed by Hera S.p.A, with operational headquarters in the Bologna province (Emilia Romagna region), offers Po Valley an opportunity to collaborate with a local business and strengthen its engagement with the local community. Hera is a major Italian multiutility company listed on the FTSE MIB, Borsa Italiana’s main Index, which includes the 40 largest stocks by capitalization, liquidity and trading volume.
The GSA will be commencing on 1 October 2025 for gas production from the Podere Maiar facility (PM-1d well) in the Selva Malvezzi production concession, replacing the current GSA with BP Gas Marketing which expires on 1st October 2025. The process was conducted through a competitive tender process, with local player Hera Trading emerging as the successful bidder. Po Valley expects the outcome to be strongly supported by local stakeholders.
Po Valley has completed nearly 2 ½ successful years with partner BP Gas Marketing from first gas flow in July 2023 to date delivering ~54.4 million scm of gas from PM-1d. The Company’s agreement with BP Gas Marketing Ltd has been a valued and effective partnership. BP’s professionalism and support have contributed to the Company’s success, and Po Valley thanks BP Gas Marketing for their support and collaboration as the agreement concludes on 1st October 2025.
PVO is Operator of the Selva Malvezzi production concession under a Joint Operating Agreement ('JOA') and holds a 63% interest with Prospex Energy subsidiaries holding 17% through PXOG Marshall Limited (PXOG) and 20% UOG Italia Srl (UOG) ('Prospex Group').
Po Valley Chairman and CEO Kevin Bailey said: 'We are pleased to have successfully negotiated a new gas sales agreement (GSA) with Hera Group; a respected energy company with operational headquarters in the Bologna area. This marks an important milestone for Po Valley, offering us the opportunity to contribute to Italy’s energy independence by collaborating with a local partner, as well as deepening our engagement with the community. The agreement with Hera will replace our current GSA with BP Gas Marketing Ltd, which expires on 1st October 2025.
'Our gas sales agreement with BP Gas Marketing Ltd has been a strong and productive partnership. We’ve appreciated their professionalism and reliability throughout the term of the agreement, which has played an important role in supporting Po Valley’s operations and growth. As we transition to a new agreement with Hera, we acknowledge the solid foundation built with BP and thank them for their collaboration.'
Source: Po Valley
