China’s Fortune Oil to start gas sales from Liulin project in 2012

23 December 2011 10:16  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s Fortune Oil has made significant progress in its coal bed methanol (CBM) project at the Liulin block in Shanxi province and aims to begin gas sales in 2012, the company said late on Thursday.

Well drillings at the block are expected to be completed in the first quarter of next year and the drilling programme is scheduled to produce 100,000 cubic metres (cbm) of gas per day, or 33m cbm/year, from the northern section of the block, Fortune Oil said in a statement.

Meanwhile, China United Shanxi CBM, which jointly develops the Liulin block with Fortune Oil, has opened a new compressed natural gas (CNG) refuelling station at Changzhi and is building a wholesale CNG station for collecting, compressing and dispatching gas produced from the Liulin block, according to the statement.

In addition, Australia’s Dart Energy on 22 December exercised its option to increase its stake in Fortune Liulin Gas from 45% to 50% for $4m (€3m), said Fortune Oil, which will lower its stake from 55% to 50% accordingly.

The London-listed Fortune Oil, which the parent company of Fortune Liulin Gas, focuses on oil, natural gas, as well as resource supply operations and investments primarily in China.

($1 = €0.77)

 


By: Fanny Zhang
+65 6780 4359



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