Sino Gas & Energy Begins Gas Sales from Ordos Basin Wells

Sino Gas & Energy Holdings Limited on Monday announced start of gas sales from the Sanjiaobei and Linxing blocks in the Ordos basin, Shanxi Province, China.

Gas sales arrangements for the sale and purchase of gas from the Linxing and Sanjiaobei blocks have been signed with Lin County Jiahao New Energy Company Limited, a Shanxi industrial and commercial customer, for distribution via the Yulin-Jinan regional pipeline.

Under the terms of the agreements, gas is to be sold from the Sanjiaobei central gathering station at initial prices of up to about $9.50 per thousand standard cubic feet.

 Gas production has commenced through the Sanjiaobei central gathering station from both Linxing and Sanjiaobei pilot wells, the company said.

“Initial constrained production has commenced at approximately approx. 3.5 million standard cubic feet (MMscf) per day from a pool of 16 pilot wells and is planned to be ramped up in a safe and efficient manner towards full plant capacity of 8 MMscf/day in 2015,” the company said.

Construction on the Linxing central gathering station continues to make good progress and the facility is on-track to be commissioned in mid-2015 with a capacity of approx.. 17 MMscf/day, bringing the total pilot program capacity to approx. 25 MMscf/day.