Sino G&E Commences First Gas from Linxing CGS in China's Ordos Basin
Sino Gas & Energy Holdings Limited (Sino Gas or the Company) reported Wednesday the delivery of first supply of natural gas from the Linxing Central Gathering Station (CGS) in the Ordos Basin, China.
Linxing is Sino Gas’ second CGS in the Ordos Basin as part of its pilot production program and its start-up represents another significant milestone in the progressive de-risking of the Company’s assets in the region as it moves towards full field development.
Eight wells have been tied into the Linxing CGS from south of the CGS including the first horizontal well, TB-1H. At present, six wells are currently on-stream, producing approximately 8 million standard cubic feet per day (MMscf/d). Additional wells are expected to be brought on over the remainder of the fourth quarter to further ramp-up production, in particular from the TB-26 area north of the CGS.
Start-up of the Linxing CGS encountered minor delays due to a modification required at the gas buyer’s pressure station which was identified during their safety audit. This modification took longer than anticipated, resulting in completion of the work coinciding with a planned annual maintenance shutdown of the Yuji pipeline and subsequently the Golden Week holiday in China between Oct. 1 and 7.
Australia China Energy Cooperation
Sino Gas is the first Australian company to produce and sell natural gas from unconventional reservoirs in mainland China and its work in the region has been recognized by representatives of the Australian Government, including the recently appointed Minister for Resources, Energy and Northern Australia, Josh Frydenberg.
Minister Frydenberg stated, "...I especially congratulate Sino Gas on being the first Australian company to produce natural gas in China for its domestic market. The project represents a major foreign investment in China's energy sector and highlights more broadly the great potential for Australian investment in China, particularly under our newly forged China Australia Free Trade Agreement. It also demonstrates Australia's ongoing commitment to enhancing energy security in the region and builds on our strength as a reliable and competitive energy supplier..."
Full text of the letter from Minister Frydenberg and additional photos from the Linxing facility can be viewed on our website at www.sinogasenergy.com.
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