Shanxi Gas & Shanxi Guoxin to Reorganize New CBM Giant
According to sources, the two natural gas giants, Shanxi Gas Group focusing on upstream and Shanxi Guoxin Energy Group focusing on midstream and downstream are allegedly negotiating to reorganize a new giant covering the whole CBM chain and utilization.
From 2018, Shanxi Jincheng Anthracite Mining Group (JAMG) and Taiyuan Coal Gasification Group (TCGC) jointly established Shanxi Gas Group together with other coal companies and gas companies aiming at the unified CBM resource development. By far, Shanxi Gas has become the giant in the CBM exploration and exploitation in Shanxi Province, China’s richest coal reservoir region, with over 6,000 CBM drilling wells and 1.6 bcma CBM capacity. Also, Shanxi Gas with 8,500 kilometers of piping network, achieved 3.4 bcm gas sales in 2019.
As for Guoxin Energy, it is the largest franchised gas company of Shanxi province with full coverage of midstream piping network and downstream city gas business of the province, and its market coverage in the downstream has surpassed 95% in the region. With over 6,300 kilometers of long-distance pipelines and 6,000 kilometers of city gas grid, Guoxin Energy achieved 5 bcm gas sales in 2019.
Each of the two parties has advantages and disadvantages, and how to forge up an efficient coal-based gas giant and who to take the lead will fill the reorganization full of suspense. Also, China Resources Gas, Kunlun Energy and Towngas are expected to get involved into the progress, pushing the downstream market race more intense and fierce. Anyhow, a new flagship of China’s unconventional gas and city gas companies is about to sail off soon.
