China Mines CBM Research in Race for Cleaner Fuel Source
China has set up a new coal-bed methane research center in Beijing in a bid to quicken development of the cleaner-burning fuel, PetroChina's parent said in an online newsletter yesterday.
The center, opened on Wednesday, is co-invested by PetroChina Co and Sinopec Corp, the nation's two largest oil and gas producers, as well as several other firms and a university, China National Petroleum Corp said.
This came just days after China ended an exclusive right for China United Coalbed Methane Corp by which it can partner foreign firms in CBM exploration, highlighting the government's effort to accelerate development in the sector.
CBM is a natural gas extracted from coal seams. China boasts CBM reserves of about 37 trillion cubic meters, ranking the third after Russia and Canada and close to the nation's conventional gas reserves. But due to lack of expertise in harvest the fuel, more than 1.3 billion cubic meters of CBM is emitted each year without being harnessed and is thereby wasted, according to a Merrill Lynch report.
The release of the flammable gas to the atmosphere, in order to avoid explosion risks in mines however, could also contribute to global warming.
"We plan to work out two to three core technologies in the CBM industry in three years," CNPC said of the vision of the new center.
China plans to produce 10 billion cubic meters of CBM by 2010, or 10 percent of its gas consumption. China produced 1.4 billion cubic meters by the end of 2006, or three percent of gas use.
China United is a venture between PetroChina and China National Coal Group. The end of its exclusive right means more qualified firms could tap the market by partnering foreign companies.
But an industry official warned the rule change could lead to lower efficiency and higher cost as "China's coal firms, which are closer to CBM resources, and oil firms, which are more sophisticated in drilling, probably will choose their respective foreign partners rather than join hands together."
No comments:
Post a Comment