Coal Bed Methane

The primary energy source of natural gas is a substance called methane (CH4). Coal bed methane (CBM) is simply methane found in coal seams. It is produced by non-traditional means, and therefore, while it is sold and used the same as traditional natural gas, its production is very different. CBM is generated either from a biological process as a result of microbial action or from a thermal process as a result of increasing heat with depth of the coal.

The Coal bed methane used by our company is purchased from Shanxi Jinshi Coal Group. The coal bed methane is convenient to transport and rich in reserve. Coal bed methane is a high quality clean energy, and is an excellent supplement to our upstream natural gas supplies.

In 2007, our company obtained CBM quota of no less than 300,000 cubic meters per day, an amount sufficient to supply all the CNG fueling stations in Henan Province.

China’s Eleventh Five-year Plan stated that the production of coal bed methane will reach 10 billion m³, with the consumption being 8 billion m³.