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Project Insights

Shanxi backs flagship gas company to boost CBM

A major injection of capital and assets could allow the flagship gas company of northern China's Shanxi province to start make significant progress on local CBM development A major injection of capital and assets could allow the flagship gas company of northern China's Shanxi province to start make significant progress on local CBM development.
By Tang Tian 11 April 2019 Asia Pacific / Exploration & Production 0 34121
Infrastructure operated by Shanxi Gas Group. (Shanxi Gas Group)

The key issue: Eight provincial companies in Shanxi in northern China have agreed to inject nearly RMB 17 billion of assets and capital into a flagship gas company set up a year ago to boost weakening development of the province’s abundant CBM resources.

Interfax analysis: Shanxi Gas Group, the flagship Chinese company established in March 2018 to bolster CBM development in Shanxi province, will receive more CBM-related assets from four existing stakeholders – including Jincheng Anthracite Mining Group (JAMG), Shanxi’s biggest CBM producer. Four other...