LONDON – Primeline Energy Holdings Inc. (TSXV: PEH) reports that trial production of gas from the LS36-1 gas field in the East China Sea has now begun.
With the completion of the last section of the gas sales pipeline and connection to the provincial gas grid, the LS36-1 gas field development was completed on July 1. Since then, CNOOC Ltd, as operator, and the downstream buyer, Zhejiang Provincial Gas Development Co., began joint commissioning of the upstream and downstream facilities and trial gas production from the LS36-1 gas field begun on July 16.
The LS36-1 gas field is located in 84 m (276 ft) of water in the East China Sea about 150 km (93 mi) from the city Wenzhou. The field was discovered by Primeline and has been developed by CNOOC, as operator, Primeline Energy Holdings, and Primeline Petroleum Corp.
The development comprises a production platform with four production wells, asubsea pipeline, and an onshore processing terminal. The gas is being sold to Zhejiang Gas, the owner and operator of the Zhejiang Provincial Gas Grid.