Tian Yongdong, deputy to the National People's Congress and Shanxi Blue Flame Holding Company Limited(000968) General Manager: increase development support and increase the scale of CBM production

Compared with coal and oil, natural gas, as a clean energy, has been widely promoted and applied by the international community in recent years. Under China's resource endowment of "rich coal, poor oil and little gas", developing natural gas resources and stabilizing market supply is one of the important propositions to ensure social production and life.

As a leading enterprise in China's coalbed methane industry, Shanxi Blue Flame Holding Company Limited(000968) in recent years, it has focused on the development of its main business and made every effort to promote the increase of coalbed methane reserves and production. At the two sessions of this year, Tian Yongdong, deputy to the National People's Congress and Shanxi Blue Flame Holding Company Limited(000968) general manager, suggested increasing support for CBM development and increasing the scale of CBM production.

increase support for CBM development

Coalbed methane is accompanied by coal. At present, the amount of CBM extraction and exploitation in China is still low, the reserve production ratio is high, and the subsequent exploitable space is large, so it has broad exploitation prospects. From the perspective of strategic position, due to China's resource endowment characteristics of "rich coal, poor oil and less gas", China's external dependence on oil and gas remains high, the gap of natural gas consumption as a primary energy continues to increase, and coalbed methane, as a strategic supplement to natural gas, driven by the adjustment of energy structure and the "double carbon" goal, It will play an increasingly important role in ensuring national energy security.

Tian Yongdong believes that in the next few years, Chinese natural gas enterprises are bound to further strengthen upstream exploration and development, improve natural gas production and make up for China's natural gas demand gap.

As early as the 1990s, Shanxi Blue Flame Holding Company Limited(000968) affiliated units began to take the lead in carrying out surface CBM extraction test. After 30 years of exploration, the integrated development mode of coal mining and gas production has been established, and a relatively complete industrial system of CBM extraction and utilization from exploration, design, construction, extraction, gathering and transportation to CNG / LNG transportation has been gradually constructed. At present, it is the only A-share listed company specializing in CBM development and utilization.

\u3000\u3000 "By the end of 2021, the wholly-owned subsidiary blue flame coalbed methane company had extracted more than 9 billion cubic meters of coalbed methane. The average growth rate of coalbed methane sales in recent three years was 17%. While creating safety and environmental benefits, it has accumulated valuable experience for the large-scale and commercial development of coalbed methane and played an important demonstration and leading role in promoting the development of China's coalbed methane industry." Tian Yongdong introduced.

However, for upstream coalbed methane exploration and development enterprises, the cost of coalbed methane exploitation is high. Although there are certain government subsidies, on the whole, the input-output is still unbalanced, which seriously restricts the rapid development of coalbed methane industry. At the two sessions this year, Tian Yongdong suggested that the state increase its support for CBM development, promote CBM development in areas with better exploration results, and increase the scale of CBM production; It is suggested to continue to provide policy support for coalbed methane finance and taxation, and increase support for coalbed methane scientific and technological research and development, especially in the research of coalbed methane development process and the development of special equipment for coalbed methane development.

coalbed methane welcomes development opportunities

In 2021, China's CBM industry generally showed a good trend of not light off-season and rising volume and price, and the fundamentals continued to improve Shanxi Blue Flame Holding Company Limited(000968) 2021's performance also increased significantly, the annual CBM production and sales increased significantly year-on-year, and the profitability increased significantly.

Referring to the development of coalbed methane Market in recent years, Tian Yongdong introduced that the state has adjusted the subsidy for unconventional natural gas, and the subsidy principle has changed from quota subsidy to "more increase subsidy" and "winter increase and winter subsidy", encouraging mining enterprises to improve their output and heating season supply capacity. In particular, the proposal of China's "double carbon" goal and efforts to build an energy supply system with clean and low-carbon energy as the main body will bring new opportunities for the development of coalbed methane industry.

Tian Yongdong said that the transformation of energy structure and the goal of "double carbon" will bring benefits to the development of CBM industry. The main component of coalbed methane is methane, and its greenhouse effect is 21 times that of carbon dioxide. Every 100 million cubic meters of methane emission reduction is equivalent to 1.5 million tons of carbon dioxide emission reduction. Replacing high-carbon energy with low-carbon energy is an effective way to achieve carbon neutralization. As unconventional natural gas, coalbed methane has lower carbon emission intensity than coal and oil. Its large-scale extraction and utilization will play an important role in realizing the "double carbon goal" in China.

Tian Yongdong also said that Shanxi Blue Flame Holding Company Limited(000968) will take the "double carbon" goal as the guide, take advantage of Shanxi's policy of deepening the energy revolution and comprehensive reform and transformation, seize the strategic opportunity of building an unconventional natural gas base, take increasing reserves and production of coalbed methane as the core and technological innovation as the support, strengthen the reserve, exploration and development of coalbed methane resources, and promote the release of production capacity, Lead Shanxi Province to stabilize and increase coal formed gas production.

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