On the evening of January 20, 2026, after seven hours of intense bidding, PetroChina Natural Gas Co., Ltd. (hereinafter referred to as “PetroChina”) secured the coalbed methane (CBM) exploration right for the Guxian Block in the Qinshui Basin, Shanxi Province, with a winning bid of RMB 559 million.

This marks the fourth CBM block successfully transferred via the Shanxi Provincial Natural Resources Online Trading Platform since September last year, with the other three blocks previously acquired by major players in the CBM sector.

Following China National Offshore Oil Company (CNOOC) and Sinopec, PetroChina—one of China’s “Big Three” oil giants—has now entered the market, meaning all three major national oil companies have recently stepped up investment in Shanxi’s CBM industry.

On December 3, 2025, the Shanxi Provincial Natural Resources Online Trading Platform released the listing announcement for the Guxian CBM exploration block in the Qinshui Basin, with a starting price of RMB 2.044 million and a bid bond of RMB 50 million. The block covers an area of 291.68 square kilometers, with a proposed exploration term of five years. Bidders were required to be domestically registered independent legal entities with net assets of no less than RMB 500 million.

PetroChina, founded in 1999 and controlled by China National Petroleum Corporation (CNPC), is China’s largest oil and gas producer and supplier, a leading enterprise in the domestic energy sector, and one of the world’s largest oil companies.

Coalbed methane (also known as coal mine gas) is an unconventional natural gas associated with coal seams. Shanxi Province is China’s most mature CBM development region, accounting for around 30 percent of national CBM resources and more than 80 percent of total output. Market participants include the three major central SOEs—CNOOC, Sinopec and PetroChina—as well as local CBM-focused companies such as Blue Flame Holding, and large coal enterprises including Jinneng Holding Group and Lanhua Group.

PetroChina has been布局 in Shanxi’s CBM sector for many years. On September 7, 2018, the National Development and Reform Commission approved the overall development plan for the Chengzhuang CBM foreign cooperation project in the Qinshui Basin, in which PetroChina was one of the project developers. The project aimed to accelerate the construction of a CBM industrial base in the Qinshui Basin, optimize the energy mix, and improve coal mine safety conditions.

At the Coal and CBM Co-mining Efficiency Enhancement Forum held in Taiyuan on September 27, 2025, it was disclosed that Shanxi’s CBM output reached 13.43 billion cubic meters in 2024. Under the “double doubling” target, Shanxi aims to raise CBM production to 30 billion cubic meters by 2030. The forum also revealed that Shanxi planned to publicly offer four CBM blocks in the central Qinshui Basin in 2025, with a total area of about 1,143 square kilometers.

On September 30, 2025, China United Coalbed Methane Co., a wholly owned subsidiary of CNOOC, acquired a CBM block in the Qinshui Basin for RMB 1.005 billion, kicking off the latest round of competitive bidding. Subsequently, local state-owned enterprises such as Blue Flame Holding and Lanhua Group also acquired CBM blocks, with the three transactions totaling RMB 1.406 billion.

To further strengthen its presence in Shanxi’s CBM sector, Sinopec established Sinopec Shanxi Coalbed Methane Co., Ltd. on November 7, 2025, with a registered capital of RMB 450 million, fully owned by Sinopec.

The Guxian CBM block won by PetroChina is the fourth block in this round of transfers. From 10:00 a.m. to 5:00 p.m. on January 20, after continuous bidding, PetroChina emerged victorious with a price significantly higher than the previous two transactions, highlighting strong market interest in the asset.

With this deal completed, all three major national oil companies have recently increased their investment in Shanxi’s CBM industry, further underpinning the province’s long-term and stable development of the coalbed methane sector.