OREANDA-NEWS. August 09, 2012. Unconventional gas group Dart Energy (ASX:DTE) said the construction of the independently owned compressed natural gas (CNG) facility at Liulin, China, has been completed and it is now awaiting final approval.

The plant is to compress the natural gas collected from the Liulin Coal Bed Methane block for onward distribution.  The field is being developed by Dart Energy and operator Fortune Oil (LON:FTO).

In addition, the Ministry of Commerce has extended the exploration period of the production sharing contract for the Liulin CBM block by two years to March 29 2014.

This allows time for pilot gas appraisal and commercialisation ahead of the aproval of the full Overall Development Plan.

Dart Energy International CEO John McGoldrick said: “Another key project in our portfolio is moving steadily towards first revenue and cashflow. Our clear focus is on a small number of projects that all have the potential to deliver production, revenue and cash-flow over the next 12 months.”

The company announced last month it expects to start initial gas sales from the Liulin project in the first half of 2013.

Dart is currently working to bring two wells drilled this year into production, bringing the total number of production wells up to five.