Fortune Oil, the China-focused resources firm, has signed a contract for a gas gathering system to connect its Liulin coal bed methane field in Shanxi Province to an existing wholesale station.
The development should mean sales of the gas could start sometime next year.
Fortune says gas rates at Liulin are increasing, currently standing at 28,000 cubed metres per day.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Tee Kiam Poon, Chief Executive of Fortune Oil, said: "We are pleased with the progress we continue to make in 2012 at Liulin especially as we are seeing gas flow at commercial levels from our horizontal wells.
"The decision to move to the construction phase has now been taken with our goal to achieve commercial gas sales in 2013. Our achievements at Liulin continue to position the company as a significant developer of unconventional gas, in line with China's natural gas strategy, and pave the way for commercial gas sales and a new source of revenue for the Company."
BS
-
RICS: Housing market continues to strengthen but 2025 could be challengingThe latest survey by the Royal Institution of Chartered Surveyors reports a resilient UK housing market, but warns of headwinds next year
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrencyAccording to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
