Speech by Vice-Premier Zou Jiahua at the Inauguration Ceremony of China CBM

All Guests, Ladies and Gentlemen,
    China United Coalbed Methane Corporation Limited(China United CBM)
 formally announces its founding today. This Corporation is jointly es
tablished by the Ministry of Coal Industry, Ministry of Geology and Mi
neral Resources and China National Petroleum Corporation as approved b
y the State Council. China United CBM is a leading enterprise for the 
CBM exploration, development, transportation, sales and utilization. T
he founding of this corporation marks that China¡äs CBM exploitation h
as entered a new stage.  I¡äm here to extend cordial congratulations o
n behalf of the State Council. 
    Nowadays, the issue of environment and development have become one
 of the subjects drawing worldwide attention. Being a clean energy, CB
M is emphasized by world coal producing countries as a matter of cours
e. In the beginning of 1990s, large-scale production of CBM has been a
chieved in a few developed countries and made the CBM completely indep
endent industry.
    The coal and CBM resources are abundant in our country. The coal o
utput has ranked the world first for 10 years in succession. The energ
y structure dominated by coal will continue for a long period of time.
 So the enhancement of CBM exploitation is of important significance.
    First of all, as China is one of the countries that signed UN Fram
ework Convention on Climate Change ,China¡äs efforts to reduce emissio
n of CBM with strong greenhouse effect to protect global environment s
how that China has devoted itself to faithfully implement the Conventi
on and actively undertake the corresponding obligations. Secondly, fro
m a view of improvement of China's energy structure, the development o
f CBM as a new energy is of strategic significance. Thirdly, I should 
stress the point that the extraction of CBM before coal mining will ba
sically control coal mine gas accidents that frequently happen with gr
eat harms. It is of particular significance in our country.
    For the reasons above, the State Council will support the exploita
tion of this clean energy with great potential. Yet, exploitation of C
BM has some risks. As for the CBM enterprises, they have to put great 
investment in the initial stare and will gain just a little profits. B
ut the CBM is advantageous to the nation and the people with a compreh
ensive benefits, we should pay great attention to it . Everything is h
ard in the beginning. During the start-up stage of China¡äs CBM indust
ry, the government departments concerned should give it the necessary 
support. 
    The founding of the China United CBM enables the three industries 
of coal, geology and mineral resources, and petroleum and natural gas 
to form a strong union by supplementing each other¡äs advantages. Reso
urces from all sectors should be  concentrated on major tasks on the b
asis of overall planning. Premier Li Peng has instructed that a great 
progress should be made in coalbed methane development. The China Unit
ed CBM should make joint efforts to  start a new undertaking with a ne
w pattern and a new mechanism, carefully carry out the instruction by 
premier Li Peng and should make greater contributions to promoting the
 establishment and development of China¡äs CBM industry.
    The State Council has granted China United CBM the exclusive right
 for international cooperation in coalbed methane exploration, develop
ment and production. I hope you, under the prerequisite of full invest
igation will sum up experience, work out regulations and reasonably ha
ndle issues related, and in coalbed methane development and utilizatio
n, make every effort to  both attract foreign funds in a better way an
d uphold national benefits, and make the international cooperation wor
k under healthy development.
    Wish China¡äs CBM industry growing more and more prosperous, wish 
China United CBM¡äs undertaking  a success.
       Thank you.