China’s CBM production on the rise
Thursday, Jun 29, 2017
China’s CBM output is reported to have grown in the first five months of this year. The country produced 3.16 bcm of CBM in January-May, which was a 3.2% increase year on year, Interfax China reported.

The biggest rise was seen in Shanxi, a major coal-producing province that produced 1.8 bcm during the five months, marking a 3% increase year on year, China analysts Fenwei Energy said, quoting the provincial statistics office.

Shanxi holds 9.96 tcm – or one third – of China’s confirmed CBM reserves, Fenwei said. Much of this is concentrated in the Qinshui and Hedong coalfields.

The CBM increase comes after a decline in 2016, when overall output dropped to 17.3 bcm compared with 18 bcm in 2015.

A CBM field in Yonghe in Shanxi has just been connected by pipeline to one of China’s major west-east long-distance pipelines, Interfax reported. The field is operated by Kunlun Energy, a subsidiary of NOC China National Petroleum Corp. (CNPC).

A lack of access to distribution is one of the reasons why much of the country’s CBM is released into the atmosphere. Only 47% of China’s 2015 production was used in energy projects, Fenwei said in May. The Chinese National Energy Administration’s (NEA) production target of 24 bcm of CBM in 2020 anticipates only 66% of output being used, it has said.

Shanxi is hosting a joint venture between the United Nations Economic Commission for Europe (UNECE) and state-owned Shanxi Coking Coal Group to improve capture and usage of CBM currently vented into the atmosphere from coal mines, state media reported in May.

China’s five-year development plan up to 2020 targets increased production of all unconventional energy resources, including shale gas, as domestic conventional oil and gas output declines.

The country’s enthusiasm for tapping offshore methane hydrates has grown since test drilling under the South China Sea in May resulted in gas samples being successfully obtained. The tests are still in progress and on June 23 state news agency Xinhua reported that 235,000 cubic metres of gas had been produced to date from test wells in the Pearl River Basin south of Hong Kong.

This NewsBase commentary is from our Unconventional Oil & Gas  publication. To sign up for your free trial, click this link: https://newsbase.com/publications/unconventional-oil-gas

Read more NewsBase top stories via this link: http://bit.ly/2h95NUx
Find out more about Chinese Oil and Gas from NewsBase