CHINA has issued new rules to allow more companies to cooperate with foreign partners to explore for methane trapped in coal seams to boost energy output.
Companies designated by the State Council, China's Cabinet, will be allowed to set up the ventures with foreign businesses, according to a revised regulation posted on the Chinese government's Website yesterday. China United Coalbed Methane Corp used to be the only company allowed to enter such ventures based on a 2001 regulation.
The central government aims to boost the share of its energy produced from natural gas to 5.3 percent by 2010 from about three percent now to cut pollution and reduce reliance on coal and oil, Bloomberg News reported. China has 10 trillion cubic meters of extractable coal-bed methane reserves, according to the National Development and Reform Commission, the nation's top economic planner.
Asia American Gas Inc and China United Coalbed Methane won government approval to produce 500 million cubic meters of the fuel annually in northern China's Shanxi Province.