Sino Gas & Energy Hikes Capacity of Central Gathering System at Sanjiaobei CBM Block
Sino Gas & Energy Holdings Limited has increased the processing capacity of its Sanjiaobei central gathering station.
The company on Tuesday said that the second compressor at the Sanjiaobei central gathering station has been brought online, increasing capacity from approximately four to eight million standard cubic feet per day (MMscf/d).
Current production has increased to approximately 6 MMscf/d with 13 wells online from the pool of 16 wells currently connected. New wells which have been brought online to fill the additional capacity are currently choked back and will gradually be opened up as flow rates stabilize, the company said.
Field operations are well underway with four wells currently drilling and a further two rigs preparing to commence operations shortly. Six wells are currently undergoing testing operations, which includes development and appraisal wells on Linxing (West) and deep exploration wells on Linxing (East).
As previously announced, Sino Gas and MIE Holdings Corporation have approved $90 million capital budget (gross) designed to bring the second central gathering station online mid-year, increasing the total installed capacity of both facilities to 25 MMscf/d. A further 21 development wells are planned to be drilled with the aim of ramping up the production facilities to full capacity by year end.
In addition, there is budget allocation for continued seismic acquisition and exploration drilling to further define the reservoir as well as additional horizontal wells to support the optimization of the full field development plan.
Commenting on the announcement, Sino Gas Managing Director, Glenn Corrie said: “Our focus in 2015 is sharply on delivering aggressive production growth, securing the relevant Chinese regulatory approvals and preparing for the next phase of capacity build-out. Doubling of our Sanjiaobei capacity is another key step in ramping up total production output towards 25 MMscf/d by the end of the year.”
Sino Gas is operator of the Linxing and Sanjiaobei Production Sharing Contracts (PSCs) in the Ordos Basin, Shanxi province.
The PSCs cover an area of approximately 3,000km2 . The Ordos Basin is the second largest onshore oil and gas producing basin in China. The region has mature field developments with an established pipeline infrastructure to major markets