Shanxi Guoxin Energy, CNPC to Exploit CBM Resources in Shanxi

The Shanxi Guoxin Energy Development Group (GEDG) and China National Petroleum Corporation (CNPC) have agreed to cooperate in exploiting and utilizing coal bed methane (CBM).

The agreement signed on May 13, aims to build on the advantages of both parties that can complement each other in the CBM industry chain, China Daily reported.

The CNPC Huabei Oil Field Branch will integrate its gas pipelines in Changzhi district with the GEDG’s gas pipelines from Hongdong to Changzi. The two companies will also build a long-term mechanism of the technology and talent exchange for the exploration and development of oil and gas and the management of pipe networks, China Daily said.

According to the agreement, there will be 5 billion exploitable cubic meters of CBM in the provincial grid-tie electrical system of CBM by 2015. Shanxi is one of the provinces which have the most potential and the most CBM resources.