Sino Oil and Gas Holdings to Begin Piped CBM Supplies
Sino Oil and Gas Holdings Limited has announced that piped sales of coalbed methane (CBM) from its Sanjiao block will soon begin.
The project is jointly developed by Orion Energy International, the Group's wholly-owned subsidiary, and China National Petroleum Corporation. The company expects to achieve daily CBM sales of not less than 100,000 cubic meters by the end of this year.
“Constrained by a tight supply of natural gas and the lack of piped infrastructure, the western part of Shanxi Province has unfilled demand for gas. The Shanxi Provincial Government has therefore planned three designated CBM pipeline networks and a small scale liquefied natural gas (LNG) plant in the surrounding area of Sanjiao block. The Group's CBM block will be the major supplier of natural gas for these pipelines and LNG station,” the company statement said.
The duo is working on four projects: 1) Sanjiao-Linxian CBM pipeline to supply gas for residential and commercial/industrial use in Linxian; (2) Sanjiao-Lishi CBM pipeline network to supply gas to Lvliang for residential and commercial/industrial use; (3) a designated CBM pipeline from the Group's CBM block to support the gas consumption of Senze Coal & Aluminum Group, a local coal and aluminium production corporation; and (4) an LNG station located within the Sanjiao block to deliver gas through tankers to the east of Shanxi Province.
The four projects are expected to be completed by the end of this year.
Sino Oil and Gas Holdings CEO Mr. Xu Zucheng said: "After six years of exploration, the Shanxi CBM project is beginning to step into commercial production. Trial CNG sales have commenced since August 2011, and upon completion of the three designated CBM pipelines and LNG station, the bottleneck that constrains large-scale external sales will be eliminated. We target to achieve daily CBM sales of not less than 100,000 cubic meters by the end of this year. Looking forward to 2013, we will drive further CBM production and sales with a view to generating significant revenues for the Group."