Sino Oil and Gas Starts CBM Sales from Second Sanjiao Pipeline, China

January 22, 2013

Sino Oil and Gas Holdings announced the commencement of sales of coalbed methane (CBM) on a designated Sanjiao—Senze CBM pipeline from its Sanjiao block in Shanxi Province.

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

The pipeline was built and funded by a private enterprise in Shanxi Province to support the gas consumption requirements of Senze Coal & Aluminum Group. Senze Coal & Aluminum Group is mainly engaged in the production of alumina and flame resistant material. Anticipating a strong demand from this client, the pipeline has an annual design gas delivery capacity of 350 million cubic meters.

Piped gas sales officially commence on 5 December 2012 with trial sales on the Sanjiao-Linxian CBM pipeline. The realization of sales on pipelines signifies a major milestone in the progress of the Sanjiao CBM project. CBM sales of which is increasing by leaps and bounds this year as the construction of pipelines approaches completion. The project is expected to enter a new stage.

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LNG World News Staff, January 22, 2013; Image: Sino Oil and Gas