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CNPC to invest in coalbed methane

By Wan Zhihong (chinadaily.com.cn)
Updated: 2009-03-31 14:36

China National Petroleum Corp (CNPC), the country's largest oil and gas producer, will invest 1.58 billion yuan ($231 million) to develop coalbed methane in Shaanxi province by the end of 2010.

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The company's coalbed methane project is located in Hancheng in the northern part of Shaanxi. CNPC will invest 1 billion yuan to develop the clean energy this year, said a company statement.

The company is expected to have a daily supply capacity of 200,000 cu m of coalbed methane by the end of this year, said the statement.

To boost the use of clean energy, the country's top economic planning body, the National Development and Reform Commission, drafted a 5-year plan for the development of coalbed methane, a gas that was previously regarded as useless and dangerous. Under the blueprint, China is to increase its annual coalbed methane output to 10 billion cu m in 2010.