China Petroleum Exploration ›› 2015, Vol. 20 ›› Issue (5): 81-88.

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Strategy of CBM Industrialization in Junggar Basin

Wang Yutao, Liu Ru, Wang Fei, Xiang Ying, Xue Lie, Qiao Wenlong   

  1. Exploration and Development Research Institute of PetroChina Xinjiang Oilfield Company
  • Online:2015-09-09 Published:2015-09-09

Abstract: Junggar Basin is rich in coal-bed methane (CBM) resources. The abundance zones and main favorable exploration targets are located in the eastern Urumqi –Baiyanghe area on the southern periphery of the basin. Based on the study of engineering technological adaptability, it is necessary to use the fracturing and renovation process suitable for extraction of CBM in Junggar Basin. Under the present gas price, the drilling depth should be less than 1000 meters according to the study of the single-well CBM production ceiling. The investment in single-well asset should be less than 8 million yuan. Based on the study of the environment, risks and strategy of CBM industrial development, it is concluded that the policy framework of Chinas CBM development and application is preliminarily shaped at the present time with a series of supportive policies released, such as elimination of business exclusive franchise, preferential taxation and financial subsidies. The industry has been on the track of large-scale development. Xinjiang has released a series of favorable policies for CBM industrial development and successfully establishedthe pilot CBM development zone in the Baiyanghe area. PetroChina has also emphasized non-conventional oil and gas as an important area in the upstream sector opening to the outside world and formulated the concrete guidance documents on CBM business in Xinjiang, creating favorable policy environment for CBM industrial development in Junggar Basin. To take into account the risks for CBM development performance, a co-funded cooperative CBM exploration pattern is proposed to be the most realistic option for CBM industrial development.

Key words: CBM, industry, development, investment, strategy, Junggar Basin