G3 Expects First Gas from China CBM Project This Year

China-focused coalbed methane (CBM) explorer G3 Exploration January 30 said it expects first gas from Guizhou block later this year.

In 2018, Guizhou block exploration programme advanced with Chinese reserve report was successfully submitted. This year, the company plans to certify the reserve report and file a development plan.

“The team is focused on concluding the production and completion plan to commence test gas sales in this year so as to progress the asset into development,” Randeep Grewal, executive chairman, commented.

Last October, G3’s development plan for its Chengzhuang block was cleared by the Chinese authorities. The China National Development and Reform Commission (NDRC) issued its final approval for the overall development plan (ODP) on the block. G3, formerly known as Green Dragon Gas, has a 47% participating interest in the block with its 53% state-owned partner China National Petroleum Corporation (CNPC). 

“This ODP commits the drilling of 147 wells by year-end 2020, with drilling anticipated to start in Q1 2019,” he said.

In China, G3 holds six production sharing agreements with Chinese partners including Cnooc, CNPC and PetroChina.