Firm to explore gas resources in Guizhou

China United Coalbed Methane Corp Ltd, (Chinacbm) plans to explore resources in China's Southwest Guizhou province in an effort to lower reliance on coal and to fuel the nation's rapidly growing economy.

Wu Jianguang, vice-president of Chinacbm, said the company is aiming for an annual output of 1 billion cubic meters of coal-bed methane, the natural gas found in coal seams, in Liupanshui, a small city in Guizhou province, which is estimated to have up to 1.4 trillion cubic meters of CBM reserves.

That reserve accounts for 4 percent of the country's total reserves of coal-bed methane. Estimated at 36.8 trillion cubic meters, China holds the world's third-largest reserve after those in Russia and Canada.

"The city boasts large reserves of coal-bed methane, but output is very low," Wu said. "We are going to help explore that resource in Guizhou and enhance the actual utilization rate to 50 to 60 percent."

China has speeded up extraction and utilization of CBM as the country faces mounting pressure to reduce the role of coal in a bid to lower pollution and greenhouse gas emissions.

The National Energy Administration said China's CBM output will reach 30 billion cubic meters in 2015.

Wu said a key factor contributing to this market growth is a shift in focus from conventional gas sources to unconventional gas, which will play a critical part in meeting China's energy needs.

CBM alone could account for 14 percent of domestic gas supply by 2030, he said.

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