New Chinese Energy Development Plan

RNS Number : 2499R

Green Dragon Gas Ltd

08 December 2016

 

8 December 2016

GREEN DRAGON GAS LTD.

("Green Dragon" or the "Company")

New Chinese Energy Development Plan

Green Dragon Gas Ltd. (LSE: GDG), one of the leading independent unconventional gas development and production companies in China, welcomes the Chinese Government's and National Energy Administration's development plan (the "Plan"), released last week, that targets the percentage of China's energy mix to be accounted for by coalbed methane consumption.

Highlights of the Plan

·     Planned increase in coalbed methane consumption to 13 per cent of energy mix by 2020

·     Significant increase in investment in Chinese coalbed methane development, adding 420 billion cubic metres (2,641.6 mmboe) by 2020 to national proved reserves

·     National production to increase to 24 billion cubic metres per year (151 mmboe) in 2020, an increase of 33 per cent from 2015

·     Decrease colliery gas incidents by 15 per cent by 2020

·     Exemption of certain coalbed gas exploration and development equipment from import tariffs and VAT from 2016-2020

Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:

"The Chinese Government has again affirmed its support of coalbed methane gas development as it progresses with safety enhancements and rapidly shifts towards a cleaner energy profile. This is great news for the country, and Green Dragon Gas is poised to assist in delivering this planned surge in domestic demand. China has the third largest coalbed methane reserves in the world and Green Dragon Gas has a vast acreage to exploit, and we continue to enjoy the cooperation of our Chinese partners, working together to help deliver increases in both production and reserves from our blocks."

Please click here to listen to an interview with Randeep S. Grewal and Proactive Investors on the new Chinese Energy Development Plan: http://www.proactiveinvestors.co.uk/companies/stocktube/6559 

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

Instinctif Partners

David Simonson / George Yeomans

Tel: [phone]

Citigroup

Tom Reid / Luke Spells

Tel: [phone]

Peel Hunt

Richard Crichton / Ross Allister

Tel: [phone]

About Green Dragon Gas

Green Dragon Gas is a leading independent gas producer with operations in China and is listed on the main market of the London Stock Exchange (LSE: GDG). The Company has 549Bcf of 2P reserves and 2,379Bcf of 3P reserves across eight production blocks covering over 7,566km² of licence area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.

 

END

 

 

NRADDLFBQLFBFBL