Economic Assessment of Coalbed Methane Development System in China

Research Project , Research Report 2007

Sohei SHIMADA Dep. of Environment Systems, Graduate School of Frontier Sciences, Univ. of Tokyo
Yoshito OSHIMA Dep. of Environment Systems, Graduate School of Frontier Sciences, Univ. of Tokyo
Toru SATO Dep. Ocean Technology, Policy and Environment, Graduate School of Frontier Sciences, Univ. of Tokyo

Abstract

Future increase of coalbed methane development is expected in China. The permeability of coal seam in China is characterized low compared to that of the USA. Therefore, the use of conventional vertical wells for CBM production is not economical due to small production rate. In this study the feasibility of enhanced CBM recovery by CO2 injection using horizontal wells was assessed. The results showed that the economy of this production method is much more influenced by the methane price and carbon credit price than vertical wells due to its high methane production rate and CO2 storage rate. Horizontal wells were effective for low permeable coal seam. The feasibility in three coalfields in China, Yangquan, Fengfeng and Haodong, was evaluated.

Keywords:

Coalbed methane (CBM), Enhanced recovery, CO2, Horizontal well, China