INDUSTRY INFORMATION

CBM resources are abundant, and huge market remains to be discovered. China's coalbed methane resources are abundant. According to the data from the Prospective Industry Research Institute's "Economic Benefit Evaluation and Investment Strategic Planning Analysis Report of China's Coalbed Methane Industry in 2018-2023", the geological resources of shallow coalbed methane with a depth of 2000m in China are about 36.8 trillion square meters, mainly distributed in North China and Northwest China. area. Among them, the geological resources of coalbed methane in North China, Northwest China, South China and Northeast China accounted for 6.3%, 28.1%, 14.3%, and 1.3% of the total geological resources of coalbed methane, respectively; 1000m was shallow, 1000-1500m and The geological resources of coalbed methane from 1500 to 2000 m accounted for 38.8%, 28.8% and 32.4% of the total geological resources of coalbed methane resources in China.

Since 1990, more than 30 coal-bearing areas in the country have carried out CBM exploration drilling, and have drilled more than 400 exploration and production test wells, and obtained a large number of reservoir test parameters and production parameters. Industrial gas flow was obtained in coal-bearing areas such as Liulin, Jincheng, Dacheng and Tiefa. However, the proven geological reserves of coalbed methane in China is only 273.4 billion cubic meters, which is only 0.74% of the total forecasted resources. The huge market space needs to be explored.

The CBM market needs to be broadened, and the policy supports the rapid development of the industry.By the end of 2017, 114 coalbed methane exploration rights had been set up across the country, with an exploration area of ​​62,431 square kilometers, of which about 90% of the exploration rights were held by a small number of central enterprises. Most of these exploration rights were set up before 2008, but the long-term exploration investment was insufficient. Some of the blocks only completed the minimum survey input required, and there was a phenomenon of “circle without exploration, occupation but not mining”. Other companies with a willingness to develop are unable to obtain sufficient exploration blocks, resulting in a limited number of enterprises engaged in coalbed methane exploration and development, insufficient market competition, and less exploration investment.

China's policy incentives for CBM mining began in 2006. On June 15, 2006, the State issued the "Several Opinions on Accelerating the Utilization of Coalbed Methane", which not only clarified the preferential tax policies for the extraction and utilization of coalbed methane, but also clearly stated that enterprises engaged in coalbed methane exploration and mining will be before 2020. The application for the reduction of exploration and mining rights may be applied in accordance with the relevant regulations of the State. In April 2007, the Ministry of Finance issued the “Notice on Strengthening the Management and Management of Comprehensive Exploration and Exploitation of Coal and Coalbed Methane Resources” and the “Implementation Opinions on the Development and Utilization of Substances for Coalbed Methane (Gas)”. The cumulative subsidies in 2007-2013 were 720 million yuan.

The potential of gas power generation is near 10 billion According to the “Thirteenth Five-Year Plan”, although the growth rate of underground gas drainage is not obvious because of coal de-capacity, the utilization still shows a good growth trend, especially in terms of utilization rate, it will increase from 35% to 50. %. Taking into account the characteristics of underground gas, the forward-looking view that the utilization rate is basically used in the field of power generation: if the gas is calculated according to 1 cubic meter of 30% purity gas, by 2020, the gas power generation can reach 14 billion degrees per year; At present, the price of 0.50 yuan / kW, the annual market capacity is not less than 7 billion yuan; considering that by 2020, the utilization rate of underground gas is only 50%, the potential for subsequent growth is not small.

According to the “Thirteenth Five-Year Plan”, by 2020, natural gas will increase the proportion of primary energy consumption to about 10%, natural gas consumption will reach 360 billion cubic meters, and the compound annual growth rate will reach 14.2%, which is a long way to go. On the other hand, China's natural gas production growth is not as fast as consumption growth, and imports continue to rise. In 2016, imports were 75.3 billion cubic meters, up 22% year-on-year, and import dependence soared from 15.5% in 2010 to 36.06% in 2016. Therefore, vigorously extracting coalbed methane will help promote the consumption of clean energy and reduce the dependence of natural gas on foreign countries.

Looking ahead, in the next decade, both ground and downhole utilization will usher in a golden period. Among them, the maturity of ground use technology development and the soundness of pipeline transportation will usher in a concentrated outbreak, and the application fields will be more diversified, mainly in the incremental market; the downhole utilization will mainly be accompanied by the increase in utilization rate, and the stock market will remain Rapid growth, but the application area is more concentrated on the power generation side.

From 2010 to 2015, CBM extraction increased from 9.2 billion to 18 billion, and utilization increased from 3.7 billion to 8.6 billion, an increase of 135%. According to the “13th Five-Year Plan” of shale gas development and the “13th Five-Year Plan” for CBM development and utilization, by 2020, the utilization of coalbed methane will reach 16 billion square meters, and the production of surface coalbed methane will reach 10 billion square meters by 2020.

Prospective Industry Research Institute 10/04/2018