China Likley to Raise Subsidy for CBM
China plans to triple its current subsidy for coal bed methane gas production to 0.60 yuan per cubic metre to encourage the development of the sector, Reuters reported citing a news item in the Shanghai Securities News. The Ministry of Finance in 2008 gave coalbed methane companies a production subsidy of 0.20 yuan per cubic metres.
The country is expected to raise total funds aimed at supporting mining related technology to 5 billion yuan ($802 million) per annum, Zh ang Huangsheng, head of research at the State Administration of Coal Mine Safety said.
China aims to produce 30 billion cubic metres (bcm) of coalbed methane gas by 2015, more than triple the about 9 bcm produced in 2010, the National Development and Reform Commission said as part of a five-year plan for the industry.
It also aims to find 1 trillion cubic metres of proven geological reserves of coal seam gas by 2015, up from current proven deposits of 273.4 bcm.