PLANS to develop two of the 15 large coal-bed methane capture projects, proposed during the Second United States-China Strategic Economic Dialogue, are on the drawing board, according to the China United Coal-bed Methane Corporation.
Product-sharing contracts have been signed on all 15 projects in the two weeks since the dialogue and the first two are ready for development subject to approval from China's economic planning agency, the National Development and Reform Commission, said Zhang Guoliang, director of the department of international cooperation of the CUCMC.
The CUCMC is the only company in China authorized by the government to cooperate with foreign partners in coal-bed methane mining and development.
Eleven projects are located in northern Shanxi Province, with the other four in Anhui, Shaanxi, Jiangxi and Yunnan provinces.
Chevron has invested in four projects, Greka Energy in five, Far East Energy in three, and MidAmerican Energy Holdings, ORION Energy International and Asian American Gas Inc in one each.
Under the contracts, foreign investors will fund exploration. After the projects go into production and the exploration funding is repaid, the Chinese and foreign investors will share the proceeds.
Coal-bed gas is a natural product during the conversion of plant material to coal. Utilization of the clean fuel could contribute to the reduction of greenhouse gas emissions and help relieve energy shortages.
The cooperation is mutually beneficial to China and the US, said Zhou Dadi, an energy expert with the NDRC.
The US will profit from the cooperation, while China can improve its energy supply structure, he said.