With a new well to extract coal-bed methane in Jincheng, Shanxi province, on Saturday, daily gas production of Petro China Huabei Oilfield Co in the Qinshui Basin exceeded for 5.5 million cubic meters for the first time, according to China National Petroleum Corp.
The company has developed the country's largest coal-bed methane field, with an annual output of 2 billion cubic meters.
Coal-bed methane is a unique clean energy resource. Development of the industry can help relieve shortages of oil and gas in China while protecting the local environment, the company said.
Shanxi's proven reserve of coal-bed methane is 8.31 trillion cubic meters, one-third of the nation's total.
Covering an area of more than 3,000 square kilometers, the Qinshui coal-bed methane field in southeastern Shanxi is estimated to have 600 billion cubic meters methane.
"In recent years, a series of high-energy horizontal well technologies have been applied in the Huabei Oilfield," said Hu Qiujia, the manager of Shanxi Coal-Bed Methane Co. "So far, a total of 4,600 wells have been drilled and the output continues to improve."