Sino Gas & Energy Begins First Gas Sales from Linxing PSC in Ordos Basin
Sino Gas & Energy Holdings Limited (Sino Gas, the Company), announced Friday that it has commenced first Compressed Natural Gas (CNG) sales on its Linxing Production Sharing Contract (PSC) in the Ordos Basin, Shanxi province, China.
In October 2013, Linxing PSC partner China United Coalbed Methane (CUCBM), signed a CNG gas sales agreement (GSA) to supply gas to a division of the Shanxi International Energy Group (SIEG), who is also the purchaser of pipeline gas under the GSA signed in June 2013.
Under the CNG gas sales agreement, first gas was successfully transported by road to SIEG’s distribution facility on Dec. 21.
Commenting on the announcement, Sino Gas Managing Director & CEO, Robert Bearden said “Commencement of sales marks a significant milestone in the development of the Linxing PSC and accelerates monetization of the Company’s Ordos Basin gas assets."
“The CNG gas sales also accelerate the long-term testing of selected wells that will provide important reservoir information without excessive flaring” Bearden added.
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