Chinese Sino Wants to Sign Additional Gas Sales Agreements in 2016
China focused unconventional hydrocarbon explorer Sino Gas and Energy Holdings outlined its priorities for 2016 during the Oil and Gas China Summit which was held on September 5 and 6 in Beijing.
On the commercial front, the company is looking to finalise gas sales proceeds payment from Linxing production share contract, remit gas sales proceeds offshore China and sign additional gas sales agreements. Operationally, it wants to ramp up production to installed capacity of 25mn ft3/d, drill and tie in additional wells at Linxing PSC and restart Sanjiaobei PSC central gathering station.
Sino Gas and Energy Holdings holds a 49% interest in Sino Gas and Energy Limited (SGE) through a strategic partnership with China New Energy Mining Limited (CNEML) to develop two blocks held under production sharing contracts with CNPC and China CBM (CUCBM). SGE is the operator of the Sanjiaobei and Linxing PSCs in Shanxi province.
The company said it is looking to have approximately 2% to 3% share in China’s domestic gas production at plateau, which is likely to be achieved in 2020. The company expects to utilise existing gas trunklines to transport gas. The company claims its projects can supply natural gas into China at similar scale to total output of major LNG projects such as PNG LNG, Pluto LNG, GLNG, etc. The total cost of Sino Gas’ projects is expected to be only 20% of these LNG projects, the company said.
Sino Gas & Energy is an Australian energy company focused on developing Chinese unconventional gas assets. The Linxing PSC is split into Linxing East (1,301 km2) and Linxing West (573 km2). Sanjiaobei covers 1,123.93 km2. Sino Gas holds a 31.7% inetrest in the Linxing PSC and 24% interest in the Sanjiaobei PSC.
Shardul Sharma