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China, Indonesia, India lead the Asian CBM industry : Report

JAKARTA (Rambu Energy) – China, Indonesia and India are expected to lead the Asian coal bed methane (CBM) industry development by 2020, a new report released by Grand View Research, Inc said.

“Asia Pacific is expected to be the most dynamic regional market, with significant unexplored reserves. China, India and Indonesia are expected to lead the Asian CBM industry,” Grand View said in a media statement.

It said the Chinese Ministry of Land and Resources has already announced plans to produce 16 billion cubic meters of coal bed methane by 2015.

In addition, Indonesia has already audited 1,000 billion cubic feet (BCF) net resources and has production target of over 15,000 BCF by 2020, it said.

The key companies involved in CBM extraction in Asia Pacific include Arrow Energy, Dart Energy, Santos, PetroCHina and Petronas.

In Indonesia, companies that are developing coal-bed methane are including Ephindo, Medco Energi International, Pertamina Hulu Energi, Energi Mega Persada and Bumi Resources.

The report said that global CBM market is expected to reach US$17.31 billion by 2020, growing at a compound annual growth rate (CAGR) of 5.9 percent from 2014 to 2020.

The unconventional CBM reserves, especially in coal-rich regions are increasingly gaining the spotlight as the industry strives for energy independence.

“Exploration and commercialization of unconventional hydrocarbon energy sources is seen as a critical step by energy agencies, to stabilize the energy supply-demand gap in the coming years,” it said.

With CBM being a pure natural gas form, producers and consumers also have the opportunity to obtain much needed carbon credits and tax incentives.

The strict framework designed for extraction by various environmental agencies coupled with the highly capital intensive process is expected to be a key challenge for industry participants over the next six years, Grand View Research said.

The research agency discovers that global CBM production reached 2,920.3 BCF in 2013 and is expected to reach 4,667.4 BCF by 2020, growing at a CAGR of 7 percent from 2014 to 2020.

The utilization of CBM is dominated by power generation and industrial applications, accounting for over 64 percent of global volumes in 2013.

It said U.S. and Canada are the largest CBM producers, accounting for over 70 percent of global volume in 2013. U.S. CBM market revenues were estimated at US$ 7.22 billion in 2013 and are expected to grow at a CAGR of 5.4 percent from 2014 to 2020. (*)

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