Sino Oil and Gas Holdings Begins Piped CBM Sale from Sanjiao block

Sino Oil and Gas Holdings Limited has announced commencement of piped sales of coal bed methane (CBM) from the Sanjiao block in Shanxi Province. The project is jointly developed by Orion Energy International Inc., the Group’s wholly-owned subsidiary, and China National Petroleum Corpotion.

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, the company said.

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.