Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Green Dragon Gas Ltd gets China subsidy boost

China has increased the coal bed methane cash subsidy by 50%
Green Dragon Gas Ltd gets China subsidy boost
More state cash for Green Dragon's gas

China has increased the cash subsidy paid on gas produced from coal assets by 50%, Green Dragon Gas (LON:GDG) has reported.

The subsidiary has risen to US $1.31/Mcf from US$0.87/Mcf and is effective from the start of 2016.

Green Dragon is one the largest independent producers of coal bed methane (CBM), or unconventional gas, in China.

The company said the move underlines both how important CBM is to China's domestic energy market and the commitment of the country’s Government's for a cleaner energy mix.

Green Dragon has extensive acreage in China through six production sharing agreements in partnership with CNOOC, PetroChina and CNPC.

In 2015, the company received an average of US$9 per Mcf for piped gas and US$16 for compressed gas. It aims to produce 16bcf (billion) of gas this year, a increase of a third over 2015.

Randeep Grewal, Green Dragon’s chairman, said: "This increase is yet another demonstration of the Chinese government's continued commitment to develop domestic clean energy from Coal Beds to facilitate its objective of increasing the gas component of the energy mix.

“Green Dragon's CBM provides an important domestic resource which, after twenty years of the Company's efforts, is well defined, de-risked with proven technology and made even more economically favourable with this increased government contribution."

PhilW.jpg
Why Invest In Green Dragon Gas Ltd.? Read More Here

Register here to be notified of future GDG Company articles
View full GDG profile

Green Dragon Gas Ltd. Timeline

Article
April 27 2016

Related Articles

Hurricane Energy's drilling team on a rig at the Lancaster field, back in 2014.
June 08 2016
In stark contrast to the troubles elsewhere, a new £52mln private-equity backed funding not only feels like a big deal but also serves as a reminder of Hurricane’s game changing’ potential.
One of Iofina's plants in Oklahoma where it produces iodine from brine water taken as by product from oil fields
July 12 2016
Iofina shares have rallied over 180% since April. A new debt deal and the prospect of improving markets bode well for the AIM group's continuing recovery.
Prime Minister David Cameron supports fracking in the UK, he is pictured at a IGas Energy shale well site.
March 16 2016
A 25% drop in production costs and oil sales above $60 are the obvious, somewhat cherry-picked highlights of 2015's financial results.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.