China to Introduce Canadian Methane Technology

China and Canada will cooperate in exploiting the energy potential of methane from China's coal beds.

The Ministry of Foreign Trade and Economic Cooperation has signed a memorandum of understanding on China's coal-bed methane technology development and carbon dioxide sequestration project.

The project aims to effectively exploit coal-bed methane, a kind of clean energy, while storing carbon dioxide, a greenhouse gas, in unminable deep coal beds in China's poverty-stricken interior.

The Canadian side will transfer advanced technology for the project, which is also devoted to establishing sustainable economic links between coalbed methane-related industries of the two countries.

Repeated small- and full-scale pilot tests will be carried out at different sites to develop commercial coal-bed methane production and carbon dioxide storage and help Chinese technicians master the technology, which is said to have great potential for developing coal-bed methane resources that cannot be exploited by conventional means.

The total project budget includes five million Canadian dollars from Canada and 25 million yuan from China. A Canadian executive agency, comprising the Canada Alberta Research Council, Canada Computer Modeling Group Ltd. and Canada Sproule International Ltd., will make the investment.

The China United Coal-bed Methane Corporation Ltd. has been designated to be responsible for the project for the Chinese side and which will provide geological, hydro-geological and geophysical data and other necessary materials.

The company now plays a leading role in the development of China's fledgling coal-bed methane industry. It has exclusive rights for the exploration, development and production of China's coal-bed methane resources in cooperation with foreign enterprises.

To date, the company has signed 11 production sharing contracts for joint exploitation of China's coal-bed methane resources with six foreign oil companies.

(Xinhua News Agency March 30, 2002)

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