China approves US$149m coalbed methane pipeline project in northern China

[BEIJING] China's state planner has approved a 960 million yuan (S$125.4 million) coalbed methane pipeline project linking the northern provinces of Shanxi and Shaanxi, the National Development and Reform Commission said in a statement on Friday.

The 74.1km pipeline is designed to transmit 2 billion cubic metres (bcm) of gas each year and will be managed by China United Coalbed Methane Corp, a subsidiary of China's CNOOC.

The project is part of the gas pipeline connecting Shenmu city in Shaanxi province and Anping county in Hebei province.

China's state planner approved another part of the pipeline in 2019, from Shanxi to Hebei, with annual transmission capacity of 5 bcm.

The cross-region pipeline aims to help boost the development of coalbed methane, a form of natural gas extracted from coal beds.

REUTERS