HONG KONG, Nov. 24, 2016 /PRNewswire/ -- The Panzhuang CBM project, a joint Production Sharing Contract (PSC) project of AAG Energy Holdings Limited ("AAG Energy" or the "Group;" stock code: 2686), a leading independent coalbed methane (CBM) producer in China, and China United Coalbed Methane Corporation, Ltd, started trading on the Shanghai Petroleum and Natural Gas Exchange (SHPGX) today, making it the first CBM transaction to be traded online in China. The Panzhuang CBM concession is in southern Qinshui Basin, Shanxi Province and has an area of 141.8 square kilometers. In November 2011, the Overall Development Plan (ODP) of the Panzhuang project was approved by the National Development and Reform Commission, making it the first Sino-foreign CBM cooperative project to begin full-scale commercial development in China. As at 17 June 2016, Panzhuang daily gas production exceeded 1.55 mmcm/day (54.7million cubic feet ("mmcf")/day), which created a record high for the daily CBM production in Panzhuang.
Mr. Li Jing, AAG Energy Chief Executive Officer and President, commented: "The setting up of SHPGX is a milestone for China as it strives for the oil and gas reform and development, and we are delighted to see the gas from Panzhuang CBM project started trading on the exchange. I would like to take this opportunity to thank all our partners for their support in making it happen. The setting up of the platform can enable users to understand how the market operates and encourage more industrial and non-industrial users to adopt CBM which is more environmentally friendly, and to accelerate the progress of CBM commercialization in China, which will certainly benefit AAG, who is a first-mover in the CBM industry in China. In the future, we will continue to work together with all our partners to promote the market-oriented reform and development of China's oil and gas industry."
SHPGX commenced trial operation on July 26th, 2015 in Shanghai. SHPGX was founded to promote the market driven reform in the oil and gas industry and serves as a leading pricing center for the industry in the Asia Pacific region. On 26th November 2016, SHPGX will organize a formal Online Briefing cum China Oil and Gas Reform and Development Summit in Shanghai.
About AAG Energy Holdings Limited (stock code: 2686)
AAG Energy is an international energy company in China specializing in coalbed methane (CBM) exploration and development, focusing on developing and optimizing the value of unconventional gas resources to supply clean energy to the Chinese economy. AAG Energy's key assets, Panzhuang and Mabi concessions, are in Qinshui Basin, southern Shanxi province, which contains the largest amount of proven CBM geological reserves in China. The Panzhuang concession, jointly developed by the AAG Energy and China United Coalbed Methane Corporation, Ltd., is the most commercially advanced Sino-foreign CBM asset in China and the first Sino-foreign CBM concession in China to receive overall development plan approval from NDRC. The Mabi concession jointly developed by AAG Energy and China National Petroleum Corporation received preliminary ODP approval in November 2013, and Phase I commercial development has a designed production capacity of 1 billion cubic meters a year. With abundant experience in CBM commercialization and an excellent management team, AAG Energy has attracted the attention as well as support of leading international and Chinese investors including Warburg Pincus, Baring Private Equity Asia, Chinastone and Ping An. For further details, please visit www.aagenergy.com.
SOURCE AAG Energy Holdings Limited