Business executives and officials break ground for the coal-bed methane rig plant in Jincheng on Feb 24. (Photo: China Daily)

Construction of a plant to produce advanced rigs for extracting coal-bed methane began on Feb 24 in the Jinjiang Industrial Park in Jincheng, Shanxi. It heralds the province becoming the nation's most important base for coal-bed gas equipment production, according to project executives.

The plant is funded by Shanxi Gas Group, a subsidiary of Shanxi Jincheng Anthracite Coal Mining Group, and Cortech, a mining equipment manufacturer based in Beijing.

According to Wang Baoyu, general manager of Shanxi Gas, the plant is also part of provincial efforts to reduce its reliance on coal by exploring other energy sources like coal-bed methane.

According to local statistics, Shanxi's proven reserves of coalbed methane amount to 8.31 trillion cubic meters. Its output accounts for about 96 percent of the nation's total. Proven reserves of the gas at Qinshui Coal Mine in Jincheng city account for about 70 percent of the national total.

"Coal-bed methane used to be the primary threat to coal-mine safety as 80 percent of fatalities have been caused by gas-related accidents," Wang said.

The general manager noted that coal-bed methane is also a type of clean fuel, like other kinds of natural gases.

"How to develop safe and efficient ways for exploring coal-bed gas has become a pressing issue in Shanxi's energy industry," Wang said.

Jincheng Anthracite Coal Mining was one of the earliest companies in China to engage in coal-bed gas research, development and production, according to the executive.

In the past two decades, he said the company has formed a coalbed methane industrial chain that covers gas extraction, production and transportation.

The construction of the rig plant in Jincheng is the company's latest effort to create advanced equipment production for the industry, according to Wang.

Local officials praised the pioneering role of companies like Jincheng Anthracite Coal Mining in promoting Shanxi's energy industry reform.

"Coal-bed methane is a unique clean energy resource in Shanxi province. The development of the industry can help solve the problem of a short supply of oil and gas in China and can help protect the local environment," said Hou Bingrang, deputy chief of the Shanxi Energy Administration Bureau.

"Jincheng Anthracite Coal Mining is a role model in the development of this new, clean energy by offering useful experience for other enterprises in the transition from coal to gas," Hou said.

According to Shanxi's development plan for the industry, two production bases for coal-bed methane equipment will be established in Jincheng and Taiyuan, the provincial capital.

The Jincheng rig plant is part of this provincial industrial plan. With an investment of 100 million yuan ($14.4 million), the first phase of the project is scheduled to run in June.