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Our Business

CBM Industrial Chain

Upstream Infrastructure

Wellhead Production

As at 31 December 2018, the Sanjiao CBM project has completed a total of 118 wells, comprising 66 multilateral horizontal wells and 52 vertical wells. Out of the total 118 wells, 90 wells were in the normal dewatering an gas producing stage, of which 90 wells had access to the gas gathering pipeline network.

Ground Infrastructure Development

As at 31 December 2018, the Group built pipeline of 98.2km. A ground pipeline network of approximately 18 kilometers, inter-well pipelines of approximately 63.2 kilometers, and outbound pipelines of approximately 17 kilometers were completed. Approximately total 71.4 kilometers of 10KV power grid and branch power line were also completed.

CBM Processing Station

    • The expansion of the CBM processing station has been completed
    • Its total daily CBM processing capacity has reached 500,000 m³
    • To cope with the increasing production volume of Sanjiao CBM Project, theGroup has undertaken the expansion of the station. Its daily processing capacity will reach 750,000m3 upon completion.

Sales Network

Sales Channels (Invested and constructed by third parties)

1. Sanjiao – Linxian Pipeline
  • Designed Capacity: 1 million m³/day; 350million m³/year
  • Status: Operated since Dec 2012
  • Target user: residential / commercial use in Linxian city

2. Sanjiao – Senze Pipeline
  • Designed Capacity: 1 million m³/day; 350million m³/year
  • Status: Operated since Jan 2013
  • Target user: Support gas consumption of Senze Coal & Aluminum Group, a flame resistant material and aluminum producer

3. Sanjiao – Lvliang Pipeline(planned to supply gas to Xiaoyi City and Eastern Shanxi Gas Network)
  • Designed Capacity: 1 million m³/day; 350million m³/year
  • Status: Construction of pipeline completed in Jan 2014
  • Target user: residential / commercial/ industrial use in Lvliang City

4. He Dong Pipeline
  • Provincial pipeline cross Sanjiao with transportation capacity over 8.5 million m³/day and 3 billion m³/year
  • Status: Completed construction

5. Sinopec Yuji Pipeline
  • National pipeline with transportation capacity 8.5 million m³/day and 3 billion m³/year
  • Status: Completed construction

Sales Channels under Construction

In addition, there are two LNG Station is going to be built inside Sanjiao Project area. In December 2012, the Group acquired a 30% equity interest in a Sino-foreign joint venture. In order to broaden sales channels in the future, this joint venture is in the process of setting up a liquefied natural gas (“LNG”) station with daily processing capacity of 1.2 million cubic meters in the Sanjiao area of Shanxi Province.

LNG Station

  • Total investment of the project is approximately RMB 800 million, Sino Oil and Gas invested RMB 50 million
  • The design of the first phase of the LNG station, with a daily processing capacity of 300,000 cubic meters, was completed
  • The 120,000 m2 land use rights has been obtained
  • Tendering of related works is currently in process. Upon completion, the LNG station will broaden the Sanjiao project’s sales channels