CBM Liquefaction JV Plant Phase I Comes on Stream      

A coalbed methane (CBM) liquefaction plant phase I was put into operation at Jiafeng town, Qinshui county in Jincheng city of Shanxi province on July 5th, by Shanxi Hong Kong & China Coalbed Gas Company.
   Shanxi Hong Kong & China Coalbed Gas Company is a 70: 30 jv formed by The Hong Kong and China Gas Company (Towngas) and Shanxi Jincheng Anthracite Coal Mining Company (Shanxi Jincheng) in November 2006. Its businesses include gas pipeline construction, sale, distribution and storage of CBM and liquefied CBM.
   The CBM plant phase I, with a total investment of US$98 million, has CBM liquefaction capability of 250 thousand normal cubic meters (Nm3) per day.  
   Furthermore, construction on the phase II was started on the same day. The phase II, which is scheduled for startup by September 2010, is designed to have capacity of CBM liquefaction of 570 thousand Nm3 per day.
   CBM feedstock for the jv liquefaction plant is supplied by Shanxi Jincheng's associated company Qinshui Lanyan Coalbed Methane Co. A CBM sales and purchase agreement were signed between the jv and Qinshui Lanyan in December 2008 concerning the latter to daily supply 270 000-300 000 Nm3 of CBM to the liquefaction plant phase I for 30 years.
     Qinshui Lanyan will also supply 540 000-600 000 Nm3 of CBM daily to the liquefaction plant phase II via pipeline network for 30 years under an agreement inked late 2008.