China, the third-largest country in coalbed methane (CBM) reserves after Russia and Canada, is drawing increasing attention from both domestic and international coal chemical companies. The large-scale industrialization of CBM resources is on the verge of significant development.
It is reported that due to technical limitations in domestic CBM development, many Chinese companies are partnering with foreign firms that possess advanced technologies and financial resources. This year, Guizhou has accelerated its efforts in exploring CBM resources. In September, it collaborated with China Coalbed Methane Corporation—the only company authorized for foreign cooperation—and signed a product-sharing agreement with Canadian Energy Canada Ltd. for CBM development in Qingshan District, Guizhou. Meanwhile, Heilongjiang Longmei Mining Group and Hong Kong Zhongjie International, along with Canada Cathay Oil & Gas, signed a letter of intent to promote CBM production comprehensively. With support from Yunnan Province, China United plans to establish a demonstration site for surface extraction of coal mine methane (CMM) to explore commercial opportunities.
According to Sun Maoyuan, CEO of China United, the company aims to build two CBM production bases by 2010, producing between 1 billion and 1.5 billion cubic meters annually. By 2015, it plans to expand to two or three bases, achieving an annual output of 10 billion cubic meters. At that point, CBM production will reach a level suitable for commercial use.
Shanxi Jinmei Coal Group has fully leveraged the province’s proven CBM reserves, which account for one-third of the national total. Using foreign technology, the group developed a set of independent CBM ground development techniques tailored for local conditions. With a foreign loan of 2 billion yuan, it has launched a full-scale CBM project. Currently, the group’s ground pre-drainage wells are operating stably, meeting commercial development standards. It is expected that all 150 wells will be operational by year-end, reaching a gas production capacity of 100 million cubic meters. Within five to ten years, the number of pre-drainage wells is projected to reach 2,000, with annual gas production hitting 2 billion cubic meters.
Despite over a decade of exploration, CBM development in China has yet to reach commercial scale due to geological challenges, equipment limitations, and other constraints. However, with continuous technological advancements and growing investment from state-owned coal enterprises, China is making progress in developing ground CBM technologies suited to its geological conditions. Efforts to build a market for CBM utilization are also gaining momentum, gradually overcoming the barriers that have hindered its growth.
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