【ECF Weekly】Surge in Share Buybacks Signals Strong Market Faith
ECF China Shale Week Report - April 11, 2025
【Surge in Share Buybacks Signals Strong Market Confidence】 On April 8, nearly 30 A-share listed companies, including major energy firms, announced stock repurchase or increase plans, with a total potential investment of over RMB 300 billion. Central Huijin, regarded as China's market “stabilizer,” reaffirmed its commitment to long-term, value-driven investment and increasing A-share allocation. Key SOEs like PetroChina, Sinopec, and CNOOC launched significant buyback plans, ranging from RMB 20–56 billion each. Additional energy firms, including Huaneng, Shenhua, and CATL, also joined in. The State-owned Assets Supervision and Administration Commission (SASAC) pledged stronger support for market stability and value growth via sustained capital operations and asset injections. Exploration & Production 【Sichuan Gas Field Surpasses 2 Bcm Output Mark】 Since full-scale production began in 2024, the Sichuan Western Gas Field has produced over 2 billion cubic meters of natural gas and more than 120,000 tons of sulfur, contributing to China's green energy goals for the 14th and 15th Five-Year Plans. Facing challenges like new staff, wells, facilities, and technologies, the field has developed an integrated “extraction-purification-transport” model. With refined production, lean well management, and stringent safety systems, it optimized operations and reduced emissions. It also advanced sales strategies to ensure production-consumption balance, aiming to further enhance integrated development and boost overall productivity. 【China Leads Global Shift to Deep Coalbed Methane Development】 China has pioneered commercial development of deep coalbed methane (CBM), overcoming global barriers that limited production to shallow reserves. With over 500 billion cubic meters of proven deep CBM reserves and an annual capacity exceeding 2.5 billion cubic meters, China’s breakthrough has sparked global attention. Experts now see deep CBM—also known as coal-derived gas—as a future trillion-cubic-meter industry, potentially surpassing shale gas. This marks a paradigm shift in geoscientific research and exploration models. With advancements in gasification, well fracturing, and integrated management, China is positioned to lead a global revolution in coal-derived gas development. Technology & Equipment 【XCMG Modular Rig Boosts Green CBM Development】 In Shenmu, a key CBM extraction site, XCMG’s XSM2250 modular rig is driving a high-efficiency drilling campaign. Designed to navigate complex strata—from loose sand to gas-prone coal layers—the rig achieves an average drilling depth of 600 meters per day. Its modular design improves transport efficiency by over 50% and cuts costs by 30%, while digital systems and user-friendly controls raise drilling performance by 10%. XCMG continues to innovate with green, automated drilling solutions for CBM, geothermal, and mining applications, aiming to accelerate low-carbon energy development and support sustainable growth. 【Xi’an Institute Showcases Breakthrough CBM Extraction Tech】 At the 3rd China (Xi’an) International Mining Equipment & Technology Expo (Apr 10–12), China Coal Technology & Engineering Group’s Xi’an Research Institute presented its cutting-edge coalbed methane (CBM) extraction system for coal mines. The system includes horizontal well fracturing, directional drilling, and multi-seam co-extraction technologies, designed to maximize gas extraction efficiency, especially in soft, fractured coal seams and deep multi-seam reservoirs. With over 100 wells completed across 40+ mines, it has set new national records in gas output and safety performance. This innovation enhances mine safety and resource utilization while advancing green energy strategies.
