PetroChina Plans Major Increase in CBM Output

PetroChina plans to boost annual coalbed methane (CBM) output 12-fold, to 4 billion cubic metres by 2015, from the 300 million cubic metres produced last year.

"We want to step up the intensity of our output increase," said PetroChina CBM president Jie Mingxun.

Jie was speaking to Reuters on the sidelines of a conference in Hong Kong, adding that the energy giant's current technological know-how was adequate to develop the goal.

"I am not saying in the technology area we have no problems, but our current technology can enable us to develop 4 Bcm," he said.

PetroChina is among Chinese companies that have been securing unconventional gas assets to reduce reliance on coal to help fuel the country's booming domestic economy, paying  $5.4 billion for a 50% stake in shale gas assets held by Encana Corp.

On prospects for future foreign acquisitions and cooperation, Jie said Petrochina was open to different opportunities provided there was an adequate technological need and the right economic environment.

Jie said companies with specific, required technology would likely be targets, adding both small and large foreign companies would be considered, depending on the technology in focus.

PetroChina is aiming to equip itself with niche technology required to develop low-cost CBM, to increase the economic efficiency, it said in a booklet to investors.

By 2020, it is aiming to boost output to 10 Bcm to make up a significant part of parent China National Petroleum Corporation’s core business, it said