Interfax-China reported that Henan Huanglong New Energy Development Co Ltd a unit of China CBM Group Co Ltd has signed letters of intent to supply an aggregate 1.4 billion cubic meters of coalbed methane per year to two Henan Province based firms.

If the deal is consummated, CBM distributor Henan Provincial Coal Seam Gas Engineering Technology Service Co Ltd and coke chemical producer Xuchang Shoushan Jiaohua Co Ltd will be fed one billion cubic meters and 400 million cubic meters of CBM per year respectively.

China CBM Group said Shoushan Jiaohua, a unit of China Pingmei Shenma Group plans to use the CBM to further its production of methanol and acetylene. Henan Coal Seam Gas Engineering, a subsidiary of Henan Provincial Coal Seam Gas Development Utilization Co Ltd will distribute the CBM from 100 filing stations across Henan.

The CBM will come from Huanglong New Energy coal to gas project at the Pingdingshan Coal Mining Area in Henan.

(Sourced from Interfax-China)