China United CBM, AAG get Panzhuang CBM project nod

China United Coalbed Methane Co. and its U.S. partner Asian American Gas have received government approval for the development plan for the Panzhuang coalbed methane project in central China's Shanxi province.

Both companies are equal partners in the project, and Sino-American Energy, Inc., a subsidiary of the U.S. company, will be the operator.

The Panzhuang project occupies an area of 150 square kilometers and has proven reserves of 30 billion cubic meters. The project's output is expected to reach 500 million cubic meters by 2013.

Established in 1996, China United Coalbed Methane Co. focuses on exploring, developing and producing coalbed methane in cooperation with overseas companies. The company's output will reach 3 billion cubic meters by 2015.