Interfax-China reported that Hong Kong Stock Exchange listed Sino Oil and Gas Holdings Ltd will supply Shanxi Province with compressed natural gas from the company coalbed methane field in Shanxi Sanjiao Block.

Mr Wen Zixun CFO of Sino Oil Gas said the field is expected produce 15,000 cubic meter of CBM daily when it becomes operational next month. Daily output will rise to 30,000 cubic meters within a week and 150,000 cubic meters by the end of the year.

The Sanjiao Block has 43.5 billion cubic meters of proven CBM reserves, according to an earlier Sino Oil Gas announcement

Formerly known as Genesis Energy Holdings, Sino Oil Gas gained development and exploration rights to the Sanjiao Blocks with its July 2010 acquisition of Orion Energy International Inc a Beijing based private CBM producer.

(Sourced from Interfax-China)