CNPC Plans to Speed up New Energy Development - Paper

SHANGHAI, Mar. 31 -- China National Petroleum Corp (CNPC) plans to expand its new energy sector, aiming at building a total annual production capacity of 1.25 million tonnes of oil equivalent, the Shanghai Securities News reported on Wednesday.

The company will focus on coalbed methane, fuel ethanol and oil sands, the paper said.

CNPC plans to build fuel ethanol capacity of 500,000 tonnes and coalbed methane capacity of 600 million cubic metres by the end of 2010, the paper quoted Zhou Mingchun, chief financial officer of the company's listed arm PetroChina (0857.HK) (601857.SS).

By 2015, annual production capacity of new energy is expected to exceed 6 million tonnes of oil equivalent, with 4 billion cubic metres of coalbed methane, one billion cubic metres of shell gas, 2 million tonnes of fuel ethanol and 60,000 tonnes of biodiesel, Zhou also said.

Currently, CNPC has an ethanol plant with an annual production capacity of 500,000 tonnes in the northern province of Jilin, and a coalbed methane project in coal-rich Shanxi Province, the paper said.

The company has also invested 180 million yuan ($26.4 million) in a pilot biodiesel project with a production capacity of 60,000 tonnes per year.