Sino Gas to begin CBM production in Ordos next year

Sino Gas is expected to begin production of coal-bed methane at the Ordos Basin in China’s northern Shaanxi province next year with full output levels likely to be achieved in 2013.

The company has discovered 5.4 trillion cubic meters of methane reserves trapped in the basin, one of the largest deposits in the country

Sino Gas has a 70 per cent stake in Ordos’s Linxing field, while China CBM and China National Offshore Oil Corp hold the rest.

China’s coal-bed methane production may reach as much as 60 billion cubic metres in 2020 and account for 20 per cent of the country’s total natural gas output.