Canadians Rush to China for Coal Bed Methane Gas Concessions

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One of China's energy plans to reduce the country's dependence upon coal. Mining reforms sweep China to address coal mine deaths, air pollution. China seeks new mining technologies to help sustain its GDP.

Now that Canada’s province of Alberta has implemented serious plans to become a highly regarded producer of coal bed methane gas, why are suddenly Canadian companies rushing to China for government concessions? “We got access to a huge resource for very little money,” Dr. David Marchioni, one of Canada’s top Coal Bed Methane geologists, told “Instead of paying hundreds of millions for a concession this size, we paid a small fraction of that. Comparably, the project at Guizhou would have cost up to $200 million to acquire in Alberta.” Despite having helped co-author “An Assessment of Coalbed Methane Exploration Projects in Canada,” published by the Geological Survey of Canada, Dr. Marchioni’s interest right now is drilling the mammoth Boatian-Qingshan property in the Guizhou Province of China. He serves on the board of directors of Pacific Asia China Energy, a Canadian publicly traded company which was the first to receive coal bed methane gas concessions from the Chinese government’s agency.

Dr. Marchioni looks forward to exploring and developing the coal bed methane project, which is reportedly about one-half the size of Rhode Island. “The Chinese government doesn’t want to hand out resources to people who don’t do anything with them,” Marchioni told “They want them developed. They want to have gas. They want to have energy.”

He is also president of Petro-Logic Services in Calgary, a consulting firm which specializes in assessing coal bed methane gas projects. His clients have included the Canadian divisions of Apache, BP, BHP, Burlington, Devon, El Paso Energy, and Phillips Petroleum, among others. Aside from being a director of Pacific Asia China Energy, Dr. Marchione is overseeing the company’s CBM exploration program in China.

The feature article, entitled, "China's Energy Plan to Reduce Its Dependence upon Coal," can be viewed at the Internet news website,

This is Part One of a Two-Part series investigating coal bed methane gas developments in China.

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Julie Ickes