Surprise subsidy hike shows China’s faith in CBM
CBM wells in China. The sector missed its production target last year. (Petromin)
China’s announcement last week that it will raise a CBM subsidy by 50% underlines the government’s confidence in the unconventional resource and could revive momentum in the sector, which has stalled after more than a decade of development.
The current production subsidy of RMB 0.2 per cubic metre ($0.88/MMBtu) will be increased to RMB 0.3/cm until 2020, the finance ministry said last week.