Natural gas ‘viable in long term’
Prospects for the country’s natural gas market remain strong in long term, despite the economic slowdown, according to the head of one of China’s leading developers of unconventional gas resources.
Pierce Li is co-CEO and president of AAG Energy Holdings Ltd, an independent producer of coal bed methane, or CBM, which just raised $363 million in a Hong Kong flotation.
“While domestic demand for natural gas will be affected by the temporary economic slump to an extent, we are confident the Chinese economy will warm up in future,” he said.
Through a series of production-sharing contracts, AAG holds majors shares in two gas concessions in the Qinshui Basin in Shanxi province: 80 percent of the Panzhuang concession (spanning 67.4 square kilometers) and 70 percent of the Mabi concession (898.2 sq km).
Panzhuang began production in 2007 and is considered the most commercially advanced Sino-foreign-owned CBM asset in China, and remains the only one to have received full development plan approval. At the