On Sep 18th, Jereh signed a strategic partnership agreement with Yunan Qujing Government on local coal bed methane (CBM) development and comprehensive utilization, aiming at Qujing’s combined energy development and environment protection. All projects will be finished by 2019 with total investment around $142 million.
According to the agreement, Jereh and Qujing government will cofound Jereh Energy Investment (Qujing) Co.,Ltd and build a low concentration CBM power plant with total installed capacity up to 100MW. For the unexploited CBM, Jereh high-reliable equipment will facilitate the E&P of it including well drilling, cementing, stimulation, gas extraction, transportation and liquefaction, and a CBM liquefaction plant is to be built, which could produce 70,000 cubic meters LNG per day. It is expected that such integrated solution will achieve a highly efficient and eco-friendly goal for local resources optimization.
In addition, Jereh will also cooperate with Qujing on street lighting reconstruction for energy efficiency, waste heat and pressure collection for electricity generation and fueling system conversion in LNG/CNG for public transportation.
“This agreement with Qujing shows Jereh’s another success in integrated energy solution but also is a milestone for Chinese distributed energy resources (DER) development.” said Mr. Diao Renhui, Jereh’s general manager in charge of combined energy sector. “Also, Jereh shares Qujing’s commitment to promote comprehensive energy utilization and believes this cooperation will lead an energy distribution revolution.”
As the second largest city in Yunnan, China, Qujing City owns mature heavy industry and rich mineral resources. Lots of coal chemical, metallurgy and building materials companies produce large amount of industrial waste heat which can be used for electricity generation in some way. Meanwhile, China-Burma gas pipeline is planned to go across Qujing with several distribution stations built. Such advantages make Qujing a frontier for DER development and oil-to-gas, coal-to-gas projects.