Blue Flame Holding(000968)2022-12-04 10:30Group 1: Company Overview - The main business of Shanxi Blue Flame Holdings Co., Ltd. is coal mine gas management and coalbed methane exploration, development, and utilization, with coalbed methane being a high-quality clean energy source [1] Group 2: Production Process - The ground coalbed methane production process involves using extraction equipment to lower the pressure in coal reservoirs, facilitating methane extraction, which is then treated and transported to central stations [2] - Ground coalbed methane has a methane content of 98%, while low-concentration gas from coal mines has a methane content below 30% and is primarily used for power generation [2] Group 3: Utilization and Pricing - The coalbed gas utilization rate is calculated as 1 - (utilized coalbed gas volume / extracted coalbed gas volume), with various factors affecting effective utilization [2] - Pricing for coalbed gas is based on government-guided benchmark prices, allowing for a 20% upward adjustment and unlimited downward negotiation [3] Group 4: Development Plans - The company plans to drill wells based on production planning and the gas management needs of coal mining enterprises [3] - By 2020, Shanxi Province aims to achieve a coalbed gas extraction volume of 20 billion cubic meters and an annual production capacity of 30-40 billion cubic meters, with an industry output value of around 100 billion yuan [4] Group 5: Industry Distribution - The main coalbed gas industrial bases in Shanxi Province are located in the Qinshui Basin and the eastern edge of the Ordos Basin [4] Group 6: Financial Information - The company has transferred 2 billion yuan of private placement bonds to Taiyuan Coal Gasification (Group) Co., Ltd. as part of a major asset restructuring [4]