10/03/2015 - 11:34

Sino Gas signs offtake with Chinese firm

10/03/2015 - 11:34

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Sino Gas and Energy Holdings has finalised agreements for the sale of gas from its Linxing Station to a Chinese energy investor, at $US9.62 per thousand cubic feet.

Sino Gas signs offtake with Chinese firm

Sino Gas & Energy Holdings has finalised agreements for the sale of gas from its Linxing Station to a Chinese energy investor, at $US9.62 per thousand cubic feet.

The agreement with Shanxi GuoHua Energy  is valid until the end of 2017, with the contracted gas price locked in until the end of the year.

In a statement, Sino Gas said the gas price would be adjustable on an annual basis to take into account changes in local market conditions and government policies as they were implemented.

GuoHua, which is a subsidiary of Sinopec and Shanxi International Energy, holds exclusive access to the Yuji pipeline in the Shanxi province.

Sino Gas has been using the pipelines to transport gas from its two Linxing PSCs to market.

GuoHua is also responsible for the construction of a spurline pipeline to connect the Linxing central gathering facility to the Yuji pipeline, which is approaching completion.

Sino Gas managing director Glenn Corrie said the finalisation of the gas sales agreement for the Linxing station concluded one of the key commercial requirements prior to brining on first pilot production from the facility in mid-year.

Sino Gas shares were 2.6 per cent higher at 19.5 cents per share at 11:30am.

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