The gas production has commenced from both Linxing and Sanjiaobei wells via the Sanjiaobei central gathering station and is expected to be increased to 8 MMscf/day in 2015.
The initial constrained production has begun at around 3.5 million standard cubic feet (MMscf) per day from a pool of 16 wells.
Sino Gas has signed agreements with Lin County Jiahao New Energy for the sale and purchase of gas from the Linxing and Sanjiaobei blocks. It will be distributed through the Yulin-Jinan regional pipeline.
Sino Gas CEO Glenn Corrie said: "Achieving first gas from our Ordos Basin assets is a significant milestone and today represents a very positive inflection point in Sino’s future as we transition into a full-cycle E&P company, supplying low-cost gas to China’s rapidly growing domestic market.
"Our focus can now turn to maximising production from the existing facilities and advancing the build-out of additional capacity."
Expected to be commissioned in mid-2015, the Linxing central gathering station will have a capacity of about 17 MMscf/day, bringing the entire capacity to approximately 25 MMscf/day.
