Po Valley Energy's subsidiary, Po Valley Operations, has secured a new gas sales agreement (GSA) with Hera Trading, set to commence on 1 October 2025.

This agreement was signed by Po Valley Operations along with its Selva Malvezzi JV partners, PXOG Marshall and UOG Italia, following a competitive tender process, with Hera Trading as the successful bidder.

The new GSA with Hera Trading, a subsidiary of Italian multi-utility company Hera, will cover gas production from the Podere Maiar facility (PM-1d well) in the Selva Malvezzi production concession.

The contract is scheduled to last for one thermal year, ending on 1 October 2026, with an estimated supply volume of 27.96 million standard cubic metres (mscm) of gas.

Hera Trading, headquartered in Bologna, Italy, provides Po Valley with a strategic chance to partner with a local entity and further engage with the community.

The collaboration is expected to receive strong support from local stakeholders.

This new partnership is poised to begin following the conclusion in October of Po Valley's partnership with BP Gas Marketing, which has seen approximately 54.4mscm of gas delivered since first gas flow in July 2023.

Po Valley Operations holds a 63% interest as the operator of the Selva Malvezzi production concession under a joint operating agreement (JOA).

The remaining interests are held by Prospex Energy subsidiaries, with PXOG Marshall at 17% and UOG Italia at 20%.

The GSA includes a detailed invoicing process for gas sales and SNAM transport costs, with a settlement and payment process completing 20 days after the end of each month.

Po Valley chairman and CEO Kevin Bailey said: “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.

“Our gas sales agreement with BP Gas Marketing has been a strong and productive partnership. We have 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.”