Sino Gas & Energy Holdings Limited (“Sino Gas” ASX: SEH) is an Australian energy company focused on developing Chinese unconventional gas assets.
Sino Gas & Energy Holdings Limited (ASX: SEH, “Sino Gas” or the “Company”) is an Australian energy company focused on developing natural gas assets in the People’s Republic of China. Sino Gas holds a 49% interest in Sino Gas & Energy Limited (“SGE”), the operator of the Linxing and Sanjiaobei Production Sharing Contracts (“PSCs”) in the Ordos Basin, Shanxi province, China’s largest gas producing basin.
SGE has been established in Beijing since 2005 and is jointly owned with China New Energy Mining Limited (“CNEML”) via a strategic partnership.
Sino Gas also holds an option to acquire a 7.5% interest of SGE’s participating interest in the Linxing PSC by contributing 7.5% of historical back costs to SGE (3.675% assuming full CUCBM participation).
Sino Gas (ASX: SEH) was admitted to the Official List of ASX in 2009.
Operating in China since 2005
SGE has operated in Beijing since 2005 and holds interests in two unconventional gas assets in China through Production Sharing Contracts (“PSCs”). The Linxing PSC is held with CUCBM (a CNOOC wholly-owned subsidiary) and the Sanjiaobei PSC is held with PCCBM (a PetroChina wholly-owned subsidiary). SGE’s PSC partners are entitled to participate up to their 51%-PSC participating interest by contributing their future share of costs.
Strategic Acreage in the Ordos Basin
The PSCs cover an area of approximately 2,000km2 in the Ordos basin in Shanxi, a rapidly developing province, and are located on the eastern edge of the Ordos basin in close proximity of regional pipelines providing access to key demand centres.
The region has mature field developments with an established pipeline infrastructure to major markets. Natural gas is a key component of clean energy supply in China, with the 13th Five-Year Plan identifying the Ordos basin as a strategic natural gas source. Linxing was designated as a strategic asset as China drives to almost double natural gas in the energy mix by 2020.