Huanglong New Energy signs LoI with Henan firms to supply CBM
Shanghai. August 25. INTERFAX-CHINA - Henan Huanglong New Energy Development Co. Ltd. (Huanglong New Energy), a unit of China CBM Group Co. Ltd. (China CBM Group), has signed letters of intent (LoI) to supply an aggregate 1.4 billion cubic meters (bcm) of coalbed methane (CBM) per year to two Henan Province-based firms, China CBM Group announced Aug. 21.
If the deal is consummated, CBM distributor Henan Provincial Coal Seam Gas Engineering Technology Service Co. Ltd (Henan Coal Seam Gas Engineering) and coke-chemical producer Xuchang Shoushan Jiaohua Co. Ltd (Shoushan Jiaohua) will be fed one bcm and 400 million cubic meters (mcm) of CBM per year respectively, the announcement said.
Shoushan Jiaohua, a unit of China Pingmei Shenma Group, plans to use the CBM to further its production of methanol and acetylene. Henan Coal Seam Gas Engineering, a subsidiary of Henan Provincial Coal Seam Gas Development Utilization Co. Ltd (Henan Coal Seam Gas Development), will distribute the CBM from 100 filing stations across Henan, China CBM Group said.
The CBM will come from Huanglong New Energy's coal-to-gas (CTG) project at the Pingdingshan Coal Mining Area in Henan.
A timetable for the start of production at Pingdingshan has not been set, a Huanglong New Energy spokesperson, who asked to remain anonymous, told by Interfax by telephone on Aug. 24.
Huanglong previously signed a cooperative framework agreement that called for Australia's CS Gas Pty Co. Ltd. (CS Gas) to provide technical support for the Pingdingshan CTG project, Huanglong New Energy announced July 30 this year.
-HD
