Business
UPDATED: 16:03, November 10, 2006
U.S.-based Chevron exploring for coal-bed gas in north China http://english.peopledaily.com.cn/200611/10/eng20061110_320344.html
The second largest U.S. oil producer, Chevron Corporation, is prospecting for coal-bed gas in north China's Erdos Basin and expecting the test results at the beginning of next year.
The project, Chevron's first coal-bed gas exploration project in China, is funded entirely from company resources, said Chen Min, Chevron Global Gas's chief representative in China, on Thursday.
"The project is in its initial phase", said Chen, adding that if the test results are good "Chevron will cooperate with China United Coalbed Methane Corporation to exploit the find".
Coal-bed gas is natural gas that occurs in coal beds and has been created during the conversion of plant material to coal. The development of coal-bed gas, which is a clean, non-greenhouse fossil fuel, will contribute to the fight against pollution and to China's energy shortages.
The latest figures show that China has the world's third largest coal-bed gas reserves - after Russia and Canada - with proven reserves of 36.7 trillion cubic meters, equaling its onshore natural gas reserves.
By 2010, China hopes to have increased its proven reserves of coal-bed gas by 300 billion cubic meters and have an annual output of 10 billion cubic meters.
China has a plan for coal bed gas exploitation and utilization in the period 2006-2010 and has issued preferential tax and financial policies to boost the development of the coal-bed gas industry.
These policies have made coal-bed gas development an attractive industry for foreign investors. By the end of April 2006, 16 foreign companies had signed 27 contracts with domestic enterprises, with actual investments of 180 million U.S. dollars.
Source: Xinhua
Copyright by People's Daily Online, all rights reserved