Green Dragon Gas Ltd. (LSE: GDG), one of the leading independent unconventional gas development and production companies in China, welcomes the Chinese Government's and National Energy Administration's development plan, released last week, that targets the percentage of China's energy mix to be accounted for by coalbed methane consumption.
Highlights of the Plan
Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:
- Planned increase in coalbed methane consumption to 13 per cent of energy mix by 2020
- Significant increase in investment in Chinese coalbed methane development, adding 420 billion cubic metres (2,641.6 mmboe) by 2020 to national proved reserves
- National production to increase to 24 billion cubic metres per year (151 mmboe) in 2020, an increase of 33 per cent from 2015
- Decrease colliery gas incidents by 15 per cent by 2020
- Exemption of certain coalbed gas exploration and development equipment from import tariffs and VAT from 2016-2020
"The Chinese Government has again affirmed its support of coalbed methane gas development as it progresses with safety enhancements and rapidly shifts towards a cleaner energy profile. This is great news for the country, and Green Dragon Gas is poised to assist in delivering this planned surge in domestic demand. China has the third largest coalbed methane reserves in the world and Green Dragon Gas has a vast acreage to exploit, and we continue to enjoy the cooperation of our Chinese partners, working together to help deliver increases in both production and reserves from our blocks."
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