OREANDA-NEWS. May 30, 2013. The Shanxi Guoxin Energy Development Group (GEDG) has signed a cooperation agreement with the China National Petroleum Corporation (CNPC) Huabei Oil Field Branch, calling for cooperation in exploiting and utilizing coal bed methane (CBM).

The agreement signed in Taiyuan, the capital of Shanxi province, on May 13, aims to build on the advantages of both parties that can complement each other in the CBM industry chain.

The CNPC Huabei Oil Field Branch will integrate its gas pipelines in Changzhi district with the GEDG’s gas pipelines from Hongdong to Changzi. Specialized companies will be invited as the primary parties in implementing the strategic plan, following the concept of "broad cooperation, integrated pipeline, full-coverage pipe networks, mutual benefits". In addition, the two companies will build a long-term mechanism of the technology and talent exchange for the exploration and development of oil and gas and the management of pipe networks.

Shanxi is one of the provinces which have the most potential and the most CBM resources, and it has a key project of the integrated utilization of CBM, coke-oven gas, and natural gas, with its focus on utilizing CBM. Therefore, the cooperation agreement will help a lot in achieving that. According to the agreement, there will be 5 billion exploitable cubic meters of CBM in the provincial grid-tie electrical system of CBM by 2015.