Sino Gas & Energy Holdings Ltd. has begun the first compressed natural gas (CNG) sales on its Linxing production sharing contract (PSC) in the Ordos Basin, Shanxi Province, China.

In October, Linxing PSC partner China United Coalbed Methane (CUCBM) signed a CNG gas sales agreement (GSA) to supply gas to a division of the Shanxi International Energy Group (SIEG), which is also the purchaser of pipeline gas under the GSA signed in June. Under the CNG gas sales agreement, first gas was successfully transported by road to SIEG’s distribution facility on Dec. 21.

The company reports that these sales will accelerate monetization of its Ordos Basin gas assets, along with long-term testing of selected wells that will provide important reservoir information without excessive flaring.