Sino Oil and Gas eyes LNG plant in China’s Shanxi province

04 December 2012 08:36  [Source: ICIS news]

SINGAPORE (ICIS)--Hong Kong-listed oil and gas company Sino Oil and Gas said on late Monday that it plans to invest in a liquefied natural gas (LNG) plant based on coal-bed methane (CBM) at Sanjiao in China’s Shanxi province.

Under the memorandum of understanding (MOU) signed on 3 December, Sino Oil and Gas will spend yuan (CNY)30m-35m ($4.8m-5.6m) to purchase the entire equity interest of Hong Kong’s Pipeline International, which is one of the partners of the proposed LNG plant, the statement said.

Pipeline International is planning to form a joint venture with two Chinese companies to operate the 1.2m cubic metre/day LNG plant at Sanjiao in Shanxi province and will have a 30% stake in the JV, the statement added.

Sino Oil and Gas, which is already producing coal-bed methane at its Sanjiao Block, will be the major gas provider for the proposed LNG project, according to the statement.

The company has targeted to sell no less than 100,000 cubic metre/day of CBM from the Sanjiao Block by the end of this year.

Investing in the mid-stream liquefaction project will help to improve its profitability, Sino Oil and Gas said.


By: Fanny Zhang
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly