Sino Gas Starts First Gas Supply from Linxing Central Gathering Station

Sino Gas & Energy Holdings Limited on Wednesday announced first gas supply from Linxing central gathering station (CGS) in the Ordos Basin, China.

Linxing is Sino Gas’ second central gathering station 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.

"The commissioning of the Linxing CGS moves the company closer towards playing a key role in aiding China deliver on its stated energy strategy of increasing the share of natural gas in its overall energy mix. This is another significant step towards unlocking Sino Gas’ large, cost competitive resource base and I am excited about our long-term future here," Managing Director Glenn Corrie said.

Sino Gas is the first Australian company to produce and sell natural gas from unconventional reservoirs in mainland China.