CBM has become an important energy in Fuxin city, Liaoning province, and Fuxin city has become the first commercialized CBM development and utilization city in China.

In recent years, Fuxin city takes mineral resources as its major business, and strengthens the comprehensive development and utilization of CBM, to make the CBM gradually become a new emerging industry in this “coal electricity city”. Fuxin Mining Area is rich in abundant CBM resources. Its proven CBM reserves are 11.6 billion m3, recoverable reserves are 22 billion m3. As a resource transformation city, Fuxin has started its CBM research and development early in 2001, and 4 wells have been developed and gas transmission pipelines for 8 wells have been built in 2002.

CBM industry in Fuxin city has entered into a commercialization development stage. Its annual CBM drainage volume has reached 80 million m3, and all of 11 CBM wells have been built in the area. The third stage CBM project is under construction now. At present, along with the completion of construction of the supporting gas pipeline network, and realization of replacement between CBM and coal gas sources, the developed or extracted CBM from production wells of mines affiliated to Fenxi Mining Group could be provided to over 80 thousand residents of Fuxin city for their daily use, and it could also meet the demand of nearly 1000 “oil-to-gas” taxes of the city. In addition to being used for urban residents, taxes, industrial production, and for sales, it could also be used for power generation. At present, the total installed capacity of CBM power generation has reached 29.6MW, with the annual power generation of 176 million kW•h.