Australian firm Sino Gas & Energy Holdings Limited (ASX: SEH) has signed a new gas sales agreement (“GSA”) for the Sanjiaobei Production Sharing Contract (“PSC”) in China.
The joint venture is in conjunction with its Sanjiaobei PSC Partner, PetroChina, and covers gas sales from the Sanjiaobei PSC to Shanxi GuoHua Energy
Limited Company.
GuoHua is a subsidiary of Sinopec and is one of the largest gas distribution companies in Shanxi Province.
The new GSA is effective until the end of the current PetroChina marketing period at the end of 2017 with a fixed price of ~$6.40/mcf equivalent.
Sino Gas’ managing director Glenn Corrie said, “We are pleased with the continued progress we are making on delivering our gas marketing strategy, including an increased portfolio of gas
offtake options at Sanjiaobei to deliver reliable and stable production.
“The new Sanjiaobei GSA is on similar favourable terms to the Linxing contract recently signed with GuoHua, one of the dominant gas buyers in our target market.”