Nat­u­ral gas ‘vi­able in long term’

China Daily (Canada) - - TORONTO -

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

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