Eight Leading Chinese Groups Create Company to Develop Coal-Bed Methane

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Researched by Industrial Info Resources (Sugar Land, Texas)--The unveiling ceremony for Guizhou Provincial Coal Bed Methane Development and Utilization Company Limited (Guiyang, China), a state-owned company jointly invested by eight leading enterprises, was held in Guiyang, the capital city of southwestern China's Guizhou Province, at the end of December 2007. Guizhou Vice Gov. Sun Guoqiang and other leaders and representatives attended the ceremony.

Guizhou is rich in coal-bed methane resources. Based on preliminary calculations, the total reserve of shallow coal-bed methane resources within 2,000 meters of depth is more than 3,150 billion cubic meters in the province, ranking it second in China after Shanxi. The resource is mainly distributed to the Liupanshui coalfield, Zhina coalfield and Qianbei coalfield. The coal-bed reserves in these three coalfields account for 92.79% of the province's total. However, because of the lagging geological survey and the lack of pre-stage funding support, the current annual exploitation volume is less than 500 million cubic meters, and the resource-utilization rate is only about 15%. Present development of coal-bed methane is mainly based on pumping in shaft with surface exploitation as supplement. Deep processing of coal-bed methane remains blank in the province.

Development and utilization of coal-bed methane not only has important meaning in reducing the hidden safety risks of gas in coal mines, but it is also favorable for ecological production and in alleviating the shortage in energy supply.

In order to develop and utilize coal-bed methane resources effectively, upon the approval of the government of Guizhou Province, the joint-venture company was formed. The company will be responsible for developing and utilizing coal-bed methane in Guizhou Province.

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