Australian energy company Sino Gas & Energy has submitted the development plan of the Sanjiaobei gas field in China to PetroChina CBM (PCCBM), its production sharing contract (PSC) partner for approval.

Compiled in collaboration with the state-owned PCCBM, the Overall Development Plan (ODP) for the unconventional natural gas project takes into account around 60% of the current discovery in the Sanjiaobei block.

Sino Gas & Energy says that future ODP submissions intended to support the development of the remaining discovered and prospective areas of the block will be added to the initial ODP.

The company further stated that with the submission of the Linxing and Sanjiaobei ODPs, it will continue to closely work with its PSC partners. Sino Gas & Energy plans to work on planning future drilling activity and production processing expansion to enable the continued boosting of pilot production in line with approval processes.

The company is owned 49% by Sino Energy and 51% by China New Energy Mining Limited (CNEML).

Sino Gas managing director Glenn Corrie said: “We expect to obtain both ODP approvals in the first half of 2018 as we continue to observe initiatives to shorten regulatory approval timelines to bring on new sources of domestic gas supply to meet ongoing exceptionally high natural gas demand growth.

“Sino Gas enters 2018 with strong momentum with the submission of both ODPs, recently announced substantial gas price increase for Sanjiaobei production and record total production rates.”

Located in the Ordos Basin in the Shanxi province, the 1,123.93 km2 Sanjiaobei block adjoins the Linxing West to the north and the producing Mizhi gas field to the southwest.

Sino Gas owns a stake of 24% in Sanjiaobei through its stake of 49% in its subsidiary SGE. The Sanjiaobei PSC is owned 49% by SGE and 51% by PCCBM, a CNPC subsidiary.