Sanjiao CBM Block Development Plan to Get Go Ahead

Sanjiao-Qikou coalbed methane (CBM) block overall development plan (ODP) is expected to soon get approval from China's National Energy Administration (NEA), reported Xinhua Finance.

The NEA accepted ODP of Sanjiao-Qikou block in August 2012.

Beijing Orion Energy Technology and Services Co., Ltd., a subsidiary of Sino Oil and Gas Holdings Limited, in 2006 signed a product sharing contract with China National Petroleum Corporation (CNPC), holding 70 percent and 30 percent interests of the CBM block, respectively.

The block is spread over 383 square km and has output potential of 500 million cubic meters per year over next four years.

Chinese CBM industry is entering commercialization period from early period of industrialization, Xinhua Finance quoted Sun Maoyuan, an industry veteran in this sector, as saying.

China is expected to raise subsidy to development of CBM to 0.4 yuan to 0.6 yuan per cubic meter from 0.2 yuan per cubic meter and further simplify procedure on project approval.