Xinjiang to set up first Sino-foreign CBM venture
[2008-12-23 17:04:27]
The first Sin-foreign coalbed methane (CBM) joint venture is expected to be established in northwest China’s Xinjiang Uygur Autonomous Region, local newspaper reported recently.
The joint venture will be set up by Arrow Energy Limited and Urumqi Geological and Exploration Development Company of Xinjiang Geological Survey (UGC) in Fukang City of Changji Autonomous Prefecture, according to Xinjiang Daily.
The venture will be 80% and 20% controlled by Arrow and UGC, according to an agreement previously signed between the local government and the foreign party. Both parties will invest CNY 300 million to CNY 500 million in the first phase to achieve local exploitation and production. Then, CBM will become industrialized in the autonomous region as a clean energy.
China's short-term exploitable CBM resources reach 20 trillion cubic meters, and Xinjiang is the country's second largest coal basin next to Northern China. It has 24% of the country's gross CBM resources, more than 7 trillion cubic meters, revealed Ma Xinhua, deputy general manager of China National Petroleum Corporation (PetroChina Group)'s prospecting and production company.
As an unconventional natural gas, CBM can be used as fuels for autos and power plants, as well as chemical raw materials. It could be a supplement for the West-to-East Gas Pipeline.
Arrow Energy is the largest coal seam gas acreage holder in Australia, and one of Australia’s top 100 publicly-listed companies and has a current market capitalisation of more than A$2 billion.
