China to Give Boost to CBM Sector

Chinese government plans to allot more funds and roll out favourable policies to further exploit its coal bed methane reserves amid increased efforts to step up new energy exploration.

Xinhua reports that National Energy Administration expects government will allocate more money from the central budget and encourage the inflow of private capital for this emerging energy sector.

Preferential measures including helping enterprises to finance and improving the gas pricing mechanism are also noted in the policy.

China plans to complete the construction of two major production bases in the country's central and western regions in 2015, and increase the number to three to five in another five to 10 years.

The Ministry of Land and Resources said previously that the country is aiming to produce 16 billion cubic meters of coalbed methane and put 7.4 billion cubic meters into use in 2013, Xinhua reported.