According to Mr Zhu Wenda VP of Gas & Power Pipeline Center of CNOOC Gas & Power Group, the China National Oil Company Corporation, parent of CNOOC Ltd is exploring the coalbed methane businesses in northern China's Shanxi province.

Mr Zhu while speaking at the Asia Pipeline Summit 2009 said that CNOOC is considering collecting CBM in the area to supply regional clients in the form of pipeline gas, compressed natural gas or liquefied natural gas.

Mr Zhu Yonghui with CNOOC Energy Investment said that the company is working to identify projects in the field and the possible launching of power generation plants to utilize CBM.


China CBM industry expects to see fast development within the coming years and is expected to produce about 30 billion cubic meters by 2020.

Mr Zhu Wenda added that CNOOC is conducting preliminary studies on synthetic natural gas plants in North China.

CNOOC plans to provide SNG to neighboring areas and does not want to build long distance pipelines since the size of SNG plants are not big enough.

(Sourced from www.chinamining.org)