Sino Gas & Energy's China Partner Signs Gas Sales Agreement

Sino Gas & Energy’s partner in its Linxing Production Sharing Contract, China United Coalbed Methane (CUCBM), has signed a supplementary gas agreement with an industrial gas purchaser in Shanxi Province, China.

The supplementary agreement will allow earlier pilot production than anticipated in fourth quarter of 2013, through a compressed natural gas (CNG) off-take arrangement, which will see early production transported by road to a major distribution facility until pipeline sales commence, the company said.

The agreement also facilitates the long-term testing of selected wells (initially expected to be four), allowing important reservoir information to be obtained and reducing the need for excessive flaring.

Steady progress continues to be made on the pipeline pilot program, with the long-lead items for the central gathering station sourced and surveying completed for the pipeline routes, the company said.

Sino Gas’ Managing Director and CEO, Robert Bearden said the signing of the gas sales agreement will allow the company to accelerate monetisation of the gas assets and obtain long-term testing data.

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