Sino Gas signs 1 yr fixed price sales agreement

Company News

by Roma Christian

Sino Gas & Energy Holdings Limited (ASX:SEH) has signed a one year fixed price gas sales agreement with Chinese-based, Shanxi GuoHua Energy Limited (GuoHua).

The revised agreement covers the period between March 2017 and March 2018, with a fixed price of US$6.40/mcf equivalent.

GuoHua have agreed to a minimum daily quantity of 14 million standard cubic feet, though there are no penalties for a shortfall.

The energy provider says the fixed price contract is a premium to the average gas price, from the previous summer 2016 and winter 2016/2017 period.

Shares in Sino Gas & Energy Holdings Limited (ASX:SEH) are currently trading 1.18 per cent lower to 8.4 cents.