China expands coal bed methane partnerships

China has expanded foreign firms’ opportunities to develop coal bed methane gas with local partners by ending China United Coalbed Methane Corp.’s exclusive rights to foreign cooperative deals, the government said. China boasts coal bed methane reserves of 36 trillion cubic meters, the world’s third largest after Russia and Canada, according to the National Development and Reform Commission, China’s top economic planner. A regulatory amendment published on the government’s web site (<A href=”http://www.gov.cn”>www.gov.cn</A>) said that, in addition to China United, other companies designated by the State Council or cabinet would also have rights to cooperate with foreign partners to collect the gas. The amendment, approved and signed by Premier Wen Jiabao on September 18, did not name the additional companies. PetroChina, whose coal methane reserve blocks are second only to China United in terms of acreage, was likely to be licensed as a potential Chinese partner, but some legal issues needed to be addressed because PetroChina was one of two owners of China United. (September 24, 2007)