Sino Oil and Gas Starts Piped Gas Sales from Sanjiao, China

Oil and gas company Sino Oil and Gas Holdings Limited announced the commencement of piped sales of coalbed methane (CBM) from the Sanjiao block in Shanxi Province.

The project is jointly developed by Orion Energy International, the Group’s wholly-owned subsidiary, and its PRC partner, China National Petroleum Corporation.

Trial gas delivery through pipelines conducted on 5 December 2012 was met with success and signified the first delivery of piped gas for the Sanjiao CBM project. Up to the date of this release, pipeline operation has been stable. The realization of piped gas sales will remove the   project’s dependence on CNG truck delivery, and marks a new milestone in the project’s   development.

This new pipeline was built and funded by a local enterprise in Shanxi Province, and is designated to supply gas for residential and industrial users in Linxian. Downstream pipelines in support of gas delivery from the Sanjiao project will subsequently be built and put into operation. As the pipeline network is gradually completed, sales from the Sanjiao block are expected to achieve substantial leaps in growth, driving a new phase of development for   the project.

Sino Oil and Gas Holdings CEO Mr. Xu Zucheng said: “Trial CNG sales have begun since   August 2011, and with the commencement of piped gas sales, the bottleneck that constrains   large-scale external sales is eliminated. Looking forward to 2013, we will drive further CBM   production and sales with a view to generating significant revenues for the Group.”

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LNG World News Staff, December 17, 2012