Unconventional Gas Explorer Sino Gas Ups Output

Australia listed and China focused unconventional hydrocarbon explorer Sino Gas & Energy Holdings recently said gas production from Linxing and Sanjiaobei central gathering stations (CGS) in the Ordos Basin, Shanxi province has increased to about 21mn ft³/d.

The company expects production to be in the range of 20-25mn ft³/d. The rise in production is a result of drilling and tying-in new pilot wells, the restart of the Sanjiaobei CGS and start of production from the second Linxing compressor, the company said.

Linxing central gathering station (Credit: Sino Gas)

Sino Gas & Energy also stated that the agreed natural gas price for gas sold from Sanjiaobei production sharing contract has increased to yuan 1.79/m³ ($0.2/m³). The price increase represents an additional 7% from the 20% increase announced December 16, 2016 as a result of PetroChina’s final winter natural gas price adjustment in the region. The new price is effective from November 20, 2016 and is expected to apply until end of the winter period (March 2017).

Sino Gas holds a 49% interest in Sino Gas & Energy through a strategic partnership with China New Energy Mining. Sino Gas & Energy has been established in Beijing since 2005 and is the operator of the Linxing and Sanjiaobei PSCs in the Ordos Basin. 

Shardul Sharma