China’s British Gas
17 Feb 2011
A new board listing in Hong Kong. A surging share price. Major blue-chip investment. At last, the penny is dropping. Coal bed methane gas is a vital part of China’s new energy mix. And with gas deliveries that could start as early as 2011, no wonder energy investors are excited.
It’s hardly surprising that the share price of Green Dragon Gas has soared recently. The plan to list on the Hong Kong board in addition to the existing AIM listing has stimulated many investors: this coal-bed methane gas producer is evidently positioned for growth.
The numbers and facts are compelling, says Stephen Hill, vice president of the company’s corporate communications operation. “China will need 200bn cubic metres of natural gas in 2015, doubling the 2008 level, according to recent remarks by a senior industrial researcher at the energy research institute under the National Development and Reform Commission, Liu Xiaoli.”
And by 2020, unconventional gas may account for 30 percent of China’s total gas output. “This estimate was stated by Jie Mingxun, president of the CBM unit at PetroChina,” continues Mr Hill. “China, which is the world’s largest polluter, wants to triple the use of gas – which has significant environmental benefits – to around 10 percent of its energy consumption by 2020.”
The industry is well subsidised by the Chinese government, who have good reason (see box-out) to ensure its a success. By 2030, it is thought that cold bed methane could provide 14 percent of China’s gas domestic supply – a staggering amount.
For details of the news, please go to Green Dragon Gas>news.