According to Inner Mongolia’s 14th FYP plan for coal industry development, during the 14th FYP period, the investment in exploration and development for coalbed methane is expected to reach 936 million CNY (148 million USD) with 378 new coalbed methane wells constructed and 63 billion cubic meters of new proven reserves. The plan also expects to add 155 million cubic meters of annual production capacity to allow for an additional consumption of 124 million cubic meters per year (80% utilization rate).
In recent years, China’s natural gas consumption and dependence on imports have continued to grow, with consumption rising from 205.8 billion cubic meters in 2016 to 320 billion cubic meters in 2020, and dependance on imports from 35% in 2016 to 45.1% in 2020. It is estimated that by 2025, China’s natural gas consumption will reach 450 billion cubic meters. In the coal mining process, important quantities of methane, a potent greenhouse gas, are emitted into the atmosphere. Coalbed methane utilization is becoming increasingly important in China’s strategy, as it enables to reduce emissions and provides new sources of natural gas.
Investments in drilling rigs have greatly risen in 2020