South China Morning Post: Right Expertise Holds Key to Success in Coal Seam Gas Exploration in China

The flood of imported natural gas slated to arrive in China next year will not derail the production expansion plan by one of the pioneers to tap the country’s rich natural gas resources trapped between coal seams, as impending gas price reform and cost reduction measures are expected to lift demand and sales.

Stephen Zou Xiangdong, the chairman and founder of AAG Energy Holdings, said even though geological, industry structure and infrastructure challenges meant coal seam gas development in China had been slow in the past two decades, it could be a lucrative business if the right expertise was deployed to do the groundwork to enhance exploration success.

“The key to success in China’s nascent unconventional energy industry like coal seam gas is that you need to have a long-term perspective, avoid short-term bets on investments and do the necessary groundwork,” he told theSouth China Morning Post. “You must also have confidence in China’s long-term economic development.” MORE